The increased Litecoin hashrate shows that the miners’ positive sentiment is back

Litecoin, the seventh largest cryptocurrency by market cap, has seen a steady increase in its value from the previous month. However, it is still down more than 46% since its 2020 high. It’s been 9 months since the second halving and its hash rate has dropped 60% since then.

Source: BitInfoCharts

When prices recover, so does the hash rate. It climbed to 205.21 TH / s on May 17, reaching ATH within the past six months. Along with its price action similarity, Litecoin has seen a growing hash rate, currently at 201.60 TH / s. Notably, its hashrate fell to a two-year low when it dropped to 127.9 TH / s on March 16 following the Black Thursday crash.

The latest uptrend of the ever increasing hash rate could have a positive impact on prices and also be a sign of the miner’s return.

Meanwhile, accompanied by the latest increase in hash rate, its difficulty also recorded a six-month high increase to 6,675 M. The mining difficulty value increased slightly in mid-January this year. when the coin price spikes. However, this trend was short-lived and then soon dropped.

Source: BitInfocharts

On the other hand, Litecoin mining profits have not recovered. After the halving, the mining profit was also cut in half as the difficulty wasn’t adjusted immediately. While price volatility is the biggest determinant and a decline in mining profits is often offset by an increase in prices. However, Litecoin price has yet to gain the momentum needed to increase mining profits as it continues to hover near all-time lows.

Litecoin hash rate distribution

Source: LitecoinPool.org

Poolin and F2Pool continue to lead with 44.9 TH/s and 34.4 TH/s in hashrate distribution, followed by mining pools like BTC.com with 22.7 TH/s and ViaBTC with 21.9 TH/s.

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