![\"Litecoin](\"https:\/\/wncen.com\/wp-content\/uploads\/2023\/01\/chart.png?resize=860%2C479\")
<\/p>\nLitecoin has kicked off 2023 to a bright start as the crypto has surged 7% in the last 24 hours and has climbed to 12th on the market cap list.<\/p>\n
2022 was a terrible year for the entire cryptocurrency sector as the long bear market resulted in losses of more than 50% for most of the coins. Litecoin was no exception; the asset ended the year with a drawdown of about 53%.<\/p>\n
This year, however, may very well turn out to be different for LTC as the coin seems to have observed a strong start so far. At the time of writing, Litecoin is trading around $75, up 7% in the last 24 hours. The below chart displays the recent trend in the crypto’s price.<\/p>\n
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Looks like the value of the crypto has shot up during the past day | Source: LTCUSD on TradingView<\/a><\/pre>\nThe reason why this year could be better for LTC investors is that the next halving is set to take place this year. A “halving<\/a>” is a periodic event where the block rewards of miners are permanently cut in half, meaning that the supply production of the coin itself is halved.<\/p>\n
Related Reading: Most Public Crypto Firms Underperformed Bitcoin In 2022, Miners Hit Worst<\/a><\/p>\n
Since supply being constrained like this makes the asset scarcer, such an event can have a bullish effect on the price. Therefore, Litecoin holders have been hoping that a rally would build up soon, ahead of the halving scheduled for this August.<\/p>\n
As the graph shows, Litecoin has certainly already made a great start to the year, observing sharper upwards momentum than any other top coin. Though, currently, it’s unclear whether this would be the push that leads the coin to a proper halving rally, or if it’s another temporary rise before the real rally starts.<\/p>\n
Despite LTC’s poor performance during 2022, there were still some positive takeaways for the coin. For example, the network processed over 39 million transactions in the year, a new record.<\/p>\n
\nThe Litecoin Network completed over 39 million transactions in 2022. A new record!<\/p>\n
\u26a1$LTC\u26a1 pic.twitter.com\/DXbnuur2tI<\/a><\/p>\n
— Litecoin (@litecoin) December 31, 2022<\/a><\/p><\/blockquote>\n