The full impact of Litecoin's August halving is yet to be seen

Despite many arguing that the 2019 block reward halving will decimate its price, Litecoin managed to remain relatively stable.

According to the latest Coin Metrics research, there could be several explanations for this, but it might take another year before we realize the full effect the halving had on the market.

With Bitcoin's May 2020 halving getting closer, the potential impacts of the 50 percent reduction in block rewards are becoming increasingly important in the crypto industry.

Kevin Lu and the Coin Metrics team used Litecoin's August halving to evaluate two of the most common block reward halving theories.

That's why there is no immediate reaction in the price of a coin immediately after the halving.

The market anticipated the halving and bid LTC's price in advance to reduce the immediate impact on its price.

Those supporting the theory that Bitcoin's halving will push its price upwards often cite the reduction in miner-led selling pressure that happens following the halving.

Following the August halving, Litecoin's annualized supply issuance was slashed to just 4 percent, which meant that the daily selling pressure was around $300,000.

With no identifiable price rise following the LTC's August halving, many disputed this idea saying the selling pressure from miners accounted for a small amount of trading volume.

Coin Metrics found that both of these theories deserve "Continued study." With Bitcoin, Bitcoin Cash, Bitcoin Cash SV, and ZCash all scheduled to experience a block reward halving next year, it might take another year or more before the market sees the true impact of Litecoin's halving.