The situation with the Litecoin network continues to rapidly deteriorate after a halving.
According to data collected by BitInfoCharts, the LTC hash rate decreased by more than 60%, after August 5 there was a decrease in block reward by 2 times (halving).
The hashrate, which gives a rough estimate of the difficulty of mining the network, has historically been used to assess competition among miners. After reducing LTC payments per block, miners seem to have abandoned using Litecoin as a source of income, which led to a staggering decrease in network complexity.
Although miners fight for block rewards, they are also responsible for maintaining the integrity of the cryptocurrency chain and network. The drop in the hash rate makes investors doubt the safety of the coin, which can lead to a further decrease, opening the network for critical attacks.
In addition, some analysts are currently saying that litecoin has entered the lethal spiral of mining, since crypto miners can no longer profit from the coin. Litecoin founder Charlie Lee predicted in July that LTC miners would be corrected after halving, saying:
When the awards Mining cut in half, some miners will stop making profits and turn off their machines. If there are many such miners, then the blocks will slow down.