Data shows the Litecoin mining hashrate has set a new all-time high recently, a sign that could prove to be bullish for the price of the crypto.
Litecoin Mining Hashrate And Difficulty Are Currently At New Highs
The “mining hashrate” is an indicator that measures the total amount of computing power connected to a crypto network (which is, in this case, Litecoin).
When the value of this metric goes up, it means miners are bringing more rigs online on the blockchain currently. Such a trend can suggest the network is currently profitable enough that it’s attracting new miners and/or making already connected validators expand their facilities.
On the other hand, the hashrate going down implies some miners aren’t finding it profitable to mine LTC anymore, hence they are disconnecting their rigs to save on electricity costs.
Now, here is a chart that shows the trend in the Litecoin mining hashrate over the last three years:
Looks like the value of the metric has been going up in recent weeks | Source: CoinWarz
As you can see in the above graph, the Litecoin mining hashrate has been observing an uptrend recently, meaning the computing network on the network is on the rise.
Following this uptrend, the metric has managed to set a new all-time high of around 539 terahashes per second in recent days. Since then, however, the indicator has gone down a bit, although it’s still very near to this high.
The hashrate going up is generally a bullish sign for any crypto, as it means miners are finding the network attractive right now.
Rises during a bear market environment such as now can especially be positive, since they imply miners have enough confidence that the network will see growth in the future.
As a result of the hashrate increase, the Litecoin mining difficulty is also at new highs at the moment. The difficulty is a feature of the blockchain that decides how many hashes miners will have to do before they can mine a new block.
When the hashrate goes up, miners start hashing blocks faster than before (thanks to the extra power), but this goes against the network’s intention of keeping the rate of mining constant.
So, to correct this, the chain simply increases its difficulty, which slows the miners down to the appropriate level. The below chart shows the trend in the Litecoin mining difficulty.
The value of the indicator seems to be at new highs | Source: CoinWarz
At the time of writing, Litecoin’s price floats around $70.8, up 26% in the last week.
LTC shows strong growth | Source: LTCUSD on TradingView
Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, CoinWarz.com