Other Cryptocurrencies That Experience Halvings and How It Affects Their Prices
Bitcoin’s halvings often receive the most attention, and for good reason – it is the largest cryptocurrency in the world. However, there are other digital assets, some of which were forked directly from Bitcoin, that also see their supply reduced by 50% every four years.
In this article, we will shed light on these other coins that undergo halvings and explore how their values have been influenced by past halving events. But before we dive into that, let’s take a quick refresher on Bitcoin’s performance after each reduction in block rewards so far:
| Date of Halving | Price on Day of Halving | Price 12 Months Later | Change |
|---|---|---|---|
| November 28, 2012 | $12.41 | $1,129.37 | +9,000% |
| July 9, 2016 | $650.96 | $2,518.44 | +287% |
| May 11, 2020 | $8,601.80 | $56,704.57 | +559% |
*Source: CoinMarketCap*
Bitcoin Cash
Based on market capitalization, the second largest cryptocurrency with regular halvings is Bitcoin Cash (BCH). It was created in 2017 as a result of a contentious hard fork, where a dispute between miners led to the creation of a new cryptocurrency.
Bitcoin Cash differs from Bitcoin in a few key ways, such as increasing the maximum block size to 32MB in order to increase transaction capacity and decrease fees. However, both Bitcoin and Bitcoin Cash have a maximum supply of 21 million coins, with about 19.6 million currently in circulation.
While Bitcoin Cash also experiences halvings every four years, its schedule differs from Bitcoin’s. Let’s take a closer look:
| Date of Halving | Price on Day of Halving | Price 12 Months Later | Change |
|---|---|---|---|
| April 8, 2020 | $252.05 | $667.36 | +164% |
| April 4, 2024 | $527.90 | $540.80* (as of April 15, 2024) | +2.5%* (as of April 15, 2024) |
*Source: CoinMarketCap*
BCH’s most recent halving occurred about two weeks before Bitcoin’s, but it’s still too early to see the long-term effects on prices. However, there have been reports of miners selling off their holdings in recent months, potentially affecting prices. In the 10 days after the halving, miner reserves decreased from 6.22 million to 5.59 million BCH.
Some analysts believe that the selling pressure seen in Bitcoin Cash after its halving could serve as an indicator for what may happen with Bitcoin in the future.
Litecoin
Litecoin (LTC) is another major cryptocurrency that experiences halvings. Created in 2011, it was one of the first altcoins to address some of Bitcoin’s shortcomings, such as faster and cheaper transactions and decentralization. While Litecoin’s halvings also occur every four years, they occur every 840,000 blocks (instead of 210,000) and the block reward is currently 6.25 LTC.
| Date of Halving | Price on Day of Halving | Price 12 Months Later | Change |
|---|---|---|---|
| August 25, 2015 | $2.93 | $3.80 | +30% |
| August 5, 2019 | $96.83 | $59.01 | -39% |
| August 2, 2023 | $87.49 | $80.90* (as of April 15, 2024) | -7.5%* (as of April 15, 2024) |
*Source: CoinMarketCap*
Interestingly, Litecoin’s halvings haven’t always resulted in a surge in bullish activity. In addition, its ranking among top cryptocurrencies has fallen in recent years. While it was once the second largest cryptocurrency in January 2014, it currently sits at 18th.
Bitcoin SV
The third cryptocurrency with a halving we’ll discuss is Bitcoin SV (BSV). Despite being ranked 67th, BSV claims to be the “original Bitcoin blockchain” and is designed to align with Satoshi Nakamoto’s vision. However, it has faced multiple 51% attacks and was delisted by Coinbase in 2021.
BSV’s second halving occurred on April 13, 2021, making it difficult to see the long-term effects on prices. However, there is one past event to consider:
| Date of Halving | Price on Day of Halving | Price 12 Months Later | Change |
|---|---|---|---|
| April 10, 2020 | $186.52 | $272.71 | +46% |
Overall, it’s clear that Bitcoin’s halvings garner the most excitement and have the biggest impact on prices. However, it’s important to also keep an eye on other cryptocurrencies that experience halvings and how they may be affected.