Litecoin (LTC) has been one of the best performing big-cap tokens over the past few months and its hashrate just hit an all-time high, signaling potential bullish activity on the network. is showing.
After falling to a low of $40.60 in July 2022, LTC has risen more than 125% from its 2022 low, outperforming ETH and BTC over the same period.
Litecoin Hashrate Importance
Calculated hashrate numbers are generated by miners who use their collective computational power to solve increasingly complex blockchain algorithms on the network, during a process called proof-of-work, on active Litecoins. Generated by miners. Essentially, the more digital picks and axes mined, the higher the hashrate and the more participants actually using the network.
Some analysts say the increase in hashrate indicates a stronger and more secure network.
A higher hashrate means more miners are joining the network, making it harder for malicious actors to launch attacks known as the 51% attack. Such attacks are viable.
However, a sharp rise in hashrate could potentially have a negative impact on cryptocurrencies as well. The increased computing power required to mine coins requires more energy and can increase your carbon footprint. and negative environmental impacts have been shown by studies.
Another potential drawback of a sharp rise in hashrate is that it may become more difficult for smaller and individual miners to compete. This could lead to a more centralized mining he ecosystem, analysts say. There, only large mining pools or companies with significant computing power and capital can mine and get rewarded.
