As the broader crypto markets are witnessing a big correction, two popular cryptocurrencies Litecoin (LTC) and Bitcoin Cash (BCH) are among the top losers.
This has been an excellent year for Bitcoin and cryptocurrencies by and large, due to the incredible bull run that has been seen this year so far. Due to the surge in the price of Bitcoin over the past months, altcoins have also gained considerably, but one of the altcoins that has not had a great time as of late is Litecoin. However, that could change next month, if the co-founder of the cryptocurrency is to be believed.
At this point of time, the token is down by as much as 15%; however, a tweak that is going to take place on the blockchain is expected to send the prices soaring in August.
Litecoin has tumbled 30% from its 52-week high of $145 in late June.
According to most reports, which were then confirmed by the co-founder of Litecoin, Charlie Lee, the blockchain is now looking for a definitive way to change how the entire process is going to work from now on. Currently, once a block is successfully mined, 25 Litecoin tokens are produced. A lot of computing power and equipment goes into doing this. At the end of the day, the cost of electricity and maintaining the computing power is considerable, which is why the step taken by the company might not be popular with miners but could be a huge hit with investors.
From now on, the number of Litecoin tokens that will be produced per block will be cut down by 50%, meaning that each mined block will produce 12.5 Litecoin tokens instead. The ensuing scarcity is then going to increase the price of each token from next month. Lee said that it is going to be a problem for miners, and it will take some time before they adjust to the new reality. That being said, many experts believe that this particular tweak has already been priced into the current level of Litecoin.
Bitcoin Cash Falls 14%
Bitcoin Cash (BCH) is another notable loser in the crypto space and lost as much as 14% to $347, with a session low of $318. It is important to note that BCH has unperformed Bitcoin in the past one month.
Bitcoin Cash has tumbled over 30% from its recent high of $505. Moreover, BCH is down 85% from its all-time high.
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