Litecoin Hashrate Fell To Two-Year Low: Miners Are Confused
Litecoin has not been distinguished by high trading volumes for quite a long time and is significantly inferior to other cryptocurrencies. This is primarily due to the inability of the coin to provide a decent reward to miners. After the Litecoin halving in November 2019, the situation got even worse. As a result, the Litecoin hash has fallen dramatically as miners began to refuse to mine coins. Of course, there were several attempts to restore the rate of Litecoin, but they were not crowned with success.
Litecoin is now in a precarious position as the hash rate has fallen to a two-year low. Miners lose interest in the coin since the profitability of mining is at a critical minimum. According to BitInfoCharts, on March 16, the Litecoin hashrate was 127.9 TH/s. These numbers look very depressing and indicate that Litecoin rolled back to the level of 2018.
The indicators are shocking: Litecoin fell by 75% compared with its maximum at 523 TH/s in 2019.
Litecoin mining profitability fall
Amid falling Litecoin prices, we can also observe changes directly in coin mining. Analyzing the data for the last two days, experts note that the complexity of mining Litecoin decreased by almost 19% to 5, 15 million. Although at the beginning of 2020 Litecoin had positive changes in increasing the complexity of mining, the current situation has completely shattered the hopes of traders.
BTC.com experts give disappointing predictions for Litecoin. They believe that the complexity of mining will continue to fall and reach the level of 4.51 million.
Naturally, in this situation, miners are confused and ready to abandon Litecoin. If earlier the decrease in the yield of the mining of the coin was compensated by the fluctuation of prices upward, now there are no such conditions, and they are not expected shortly. Miners not only receive half the income due to the Litecoin halving, but also have to adapt to the depreciation of the digital currency against the backdrop of the increasing complexity of market conditions.
Binance Research commented on the decline in the Litecoin hashrate:
“In the conditions when the equipment for mining is not improved on the technical side, the manufacturers of mining chips are not tuned to improve their efficiency, Litecoin’s chances to restore its market position are minimized. As a result, the mining profitability of Litecoin will continue to decline. ”
At the time of this writing, the price of Litecoin was $ 33.94.