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  • Writer's pictureSarah Dixon

Binance Pool's Litecoin Hash Rate Drops 50%: What's Next?


Binance Pool's Litecoin Hash Rate Drops 50%: What's Next?
Binance Pool's Litecoin Hash Rate Drops 50%: What's Next?

According to on-chain data as of July 25, the hash rate dedicated to mining on the Litecoin network by Binance Pool - a platform focused on improving miners' income - has decreased by over 50% in the past seven months. Hash rate refers to the cumulative computing power directed towards a proof-of-work network such as Bitcoin, Litecoin or Monero. These networks depend on miners located worldwide for security, decentralization, and transaction verification.


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Binance Pool's Litecoin Hash Rate Drops 50%: What's Next?

Presently, Binance Pool is allocating approximately 28 TH/s of hash rate to the Litecoin network, a decrease from the average of around 69 TH/s recorded in January 2023. Consequently, Binance Pool has lost its standing as one of the dominant Litecoin mining pools as of July 2023. Binance Pool's Litecoin Hash Rate Drops 50%: What's Next?



Binance Pool Hash Rate To Litecoin: Pool Bay
Binance Pool Hash Rate To Litecoin: Pool Bay

Binance Pool currently holds the 7th rank in Litecoin mining pools, with a hash rate share of approximately 3.6%. However, other competitors like Poolin, F2Pool, and viaBTC occupy higher positions, despite Binance Pool being backed by the world's largest crypto exchange, Binance. The reason for this is unclear, but it could be due to legal challenges faced by Binance in multiple countries, particularly in the United States. Currently, viaBTC controls the largest share of the Litecoin network hash rate with 33%, followed by F2Pool with 17.2%, and antpool with 13%. Even though Binance Pool's ranking and hash rate have dropped over the last seven months, it still plays a crucial role in proof-of-work mining networks, including Bitcoin. In a highly competitive mining landscape, individual miners must pool their resources and dedicate hash rate through a mining pool.


Halving Incoming, Will LTC Rally?

Litecoin currently rewards miners with 12.5 LTC and transaction fees for each block mined. However, this reward will be halved soon, which could impact block mining revenue. Despite this, a potential increase in Litecoin's price may encourage miners to upgrade their equipment and deploy miners with higher hash rates.


Currently, Litecoin has a total hash rate of approximately 780 TH/s, with the network releasing 7,200 LTC to miners on a daily basis. However, the expected supply shock may affect how Litecoin prices react. If past cycles are any indication, Litecoin may rally.


Based on Litecoin's daily price charts, LTC has a resistance level at around $115 but is currently trading below $100. At this level, it has experienced a 23% drop from its peak in July 2023.


LTC price on July 26| Source: LTCUSDT on Binance, TradingView
LTC price on July 26| Source: LTCUSDT on Binance, TradingView


Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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