Binance Pool's Litecoin hash rate drops by 50%: what's next? cryptoforbs

As of July 25, the data is on-chain Indicates The hash rate allocated to the Litecoin mining network from Binance Pool, a platform focused on improving miners’ income, has decreased by more than 50% in the past seven months.

In cryptocurrency mining, hash rate is the cumulative computing power that is routed to a proof-of-work network such as Bitcoin, Litecoin, or Monero.

These public networks rely on miners distributed around the world for security, decentralization, and transaction confirmation.

Binance to Litecoin pool hash rate reduced by 50%

Currently, Binance Pool allocates approximately 28 TH/s of hashrate to the Litecoin network, which is a decline from the average of approximately 69 TH/s recorded in January 2023. As a result, Binance Pool has lost its position as one of the dominant Litecoin mining platforms. . Swimming pools as of July 2023.

Binance pool hash rate to Litecoin: Pool Bay

As of July 25, Binance Pool ranked seventh in the Litecoin mining pool scene, accounting for about 3.6% of the total hash rate share.

In comparison, competitors such as Poolin, F2Pool, and viaBTC hold higher positions, indicating that although Binance Pool is backed by Binance, the world’s largest cryptocurrency exchange, miners are choosing other pools, some of which were among the world’s first mining pools. .

At this time, the cause cannot be immediately confirmed. However, Binance faces legal challenges in many countries, especially in the United States.

Two of the country’s top regulators, the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), have filed a lawsuit against the exchange, accusing them of violating securities laws.

Based on hash rate, viaBTC currently controls the lion’s share of Litecoin mining, accounting for 33% of the total Litecoin network hash rate. It is followed by F2Pool with a share of about 17.2%, while antpool ranks third with a market share of 13%. Litecoin Pool and Poolin also channel more computing power than Binance Pool.

Due to the increasingly competitive mining landscape, individual miners must pool their resources and allocate the hash rate through the mining pool.

Despite the decline in rankings and hashrate over the past seven months, Binance Pool still plays a crucial role in proof-of-work mining networks, including Bitcoin.

Imports halved, will LTC rise?

Litecoin currently offers miners 12.5 LTC and a transaction fee for each block mined. However, this reward will be reduced by half in the coming weeks.

Even the halving will affect mining revenues. However, a price increase could encourage miners to upgrade their equipment and deploy miners with higher hash rates.

Currently, Litecoin has a total hashrate of around 780 TH/s, with the network releasing 7,200 LTC to miners daily. However, with the expected supply shock, how Litecoin prices will react remains to be seen. If previous cycles are any indication, Litecoin could rise.

According to Litecoin daily price charts, LTC has resistance around $115 but is trading below $100. At this level, it is down 23% from the July 2023 highs.

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

Featured image from Canva, chart from TradingView

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