Open interest for Litecoin futures derivative contracts has surpassed $420 million globally, representing growth of 22% year-to-date.
This surge in demand for LTC futures is the highest observed since the beginning of 2022, according to data from Coin Glass. Open interest refers to the total value of unsettled trading contracts and can be used to measure trends in interest for a particular asset.
The jump in open interest for LTC futures may be influenced by several factors, including the upcoming halving event for Litecoin, which is often referred to as the silver to Bitcoin’s gold.
During the halving event set for Aug. 5, the rate of new coin issuance on the network will be halved, and the reduction in new coins could drive up the perceived value of Litecoin due to increased scarcity.
Litecoin has seen modest gains this month, rising almost 7% so far this month from $86 to $92, according to data from CoinGecko. It's also seen a large surge in its hash rate over the past year, adding another favorable metric to the asset's profile.
Hash rate is a measure of the processing power dedicated to Litecoin’s blockchain, and it's increased 45% over the past year to reach 730 TH/s, according to data from BitInfoCharts. This surge indicates a heightened level of interest from proof-of-work miners, who play a vital role in ensuring the security of the network and validating transactions.
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