On 2 August, the block mining reward will drop to 6.25 LTC. Since total issuance is capped at 84 million coins, halving will reduce the circulating supply. Price sometimes reacts late to halving, but it always leads to growth in the long term. 

Let's look at the radial chart built on the 4-year Bitcoin cycle. Since Litecoin is Bitcoin's fork, it's borrowed the majority of BTC's key parameters. Both networks have limited issuance and a halving event once every four years. 

As the chart shows, it takes 18 months from halving to reach an all-time high in each new cycle. As such, Litecoin will hit the maximum effect of its upcoming halving between 2025 and 2026.

Litecoin's halving will take place 8 months ahead of Bitcoin's. Increasing deflationary pressures could be the driver that allows the altcoin to show higher growth rates in the medium term. So far, Litecoin's momentum is lagging by 28% in 2023.

Another thing working in the altcoin's favour is the emergence of the Ordinals protocol, which allows digital artefacts (similar to NFTs) to be minted and exchanged in networks that don't support smart contracts. Due to the hype for ordinals, the average commission on the Bitcoin network was as high as $31 in May.

The decline in hype and the advent of the BRC-69 standard led to a reduction in commissions. However, it can't be ruled out that another wave of hype could trigger an increase in commissions.

Due to its higher speed, Litecoin didn't hit a performance ceiling in May when load growth occurred, unlike Bitcoin. This kept fees below $0.01, and the network was once again considered a more favourable way to make payments with a high level of security.

Cryptocurrencies are highly likely to rally in 2023-24 due to the Fed reversing its hawkish monetary policy and lowering its key interest rate. During the cryptocurrency market's bull run, altcoins traditionally see more significant growth. As a defensive asset, Bitcoin takes a back seat.

StormGain Analytical Group 
(platform for trading, exchanging and storing cryptocurrency)