Following the recent explosion in Litecoin’s price that saw the market valuation peak at $99 a coin, the networks hashrate has reached a new all time high. It is now harder than it has ever been for a single person to attack the network through proof of work, the consensus model by where new blocks of transactions are mined and verified.
According to data provided by BitInfoCharts, the network peaked at 359.43TH/s on 4th April 2019 breaking the previous high of almost 11 months ago 24.05.18 at 342.88TH/s.
The network’s hashrate has historically followed price movements somewhat closely, behaving in a similar fashion to a moving average as it takes time for miners to setup and acquire new machines. However, it can react quicker to a down turn in price as it’s just a matter of switching them off once they become unprofitable. The Hashrate in this case has quickly recovered and stuck closely to the meteoric rise in price as the mining hardware was most likely still sitting on the sidelines just waiting to come back online. This would also explain why it has reached a new all time high even though the price is still 1/4 from the peak of $400+.
Another potential explanation for the recent rise, besides price, may be more efficient mining hardware being issued /used. If this were the case we are not expressly aware of it.
It’s reasonable to assume that there is still greater potential for room to the upside as hashrate has only roughly doubled whilst the Litecoin price has more than quadrupled. The longer we hang around this area the more accurate and stable the hashrate will be, allowing us to properly evaluate a true market value for future assessment. Going on existing data and hardware, we think it would be possible to comfortably reach 500TH/s at $100. This would again depend on the availability of mining hardware so don't expect it to continue at this velocity going forward.