The first week of crypto trading in 2022 isn’t off to a terribly interesting start, with most notable cryptos flatlining. But in some corners of the market, there are a lot more interesting happenings. Altcoins are seeing great upticks to begin the year — some are even posting gains north of 20%. Ravencoin (CCC:RVN-USD) is one such star. With a catalyst coming in a week, investors are scooping up Ravencoin in advance and pushing RVN prices higher.
Ravencoin is a peer-to-peer blockchain, forked from Bitcoin (CCC:BTC-USD) four years ago. Using the Ravencoin network, users can seamlessly send securities to one another from anywhere in the world. These tokens can be anything. Unlike Bitcoin, Ravencoin gives users the ability to mint tokens on the blockchain. These tokens can be tied to any asset, be it precious metals, carbon credits, fiat currency, or even non-fungible tokens (NFTs) like sports tickets or property deeds.
The coin distinguishes itself from its progenitor in a number of ways, from a total circulation 100 times larger than Bitcoin’s, to its much faster block time of one minute to Bitcoin’s 10 minutes. One distinction that is of special note this week is the network’s reward system. While Bitcoin rewards miners 50 BTC per block, Ravencoin rewards its miners with 5,000 RVN. However, that’s set to change, and bring gains along with the switch.
Ravencoin (RVN) Crypto Prepares to Gain With Halving Event
Ravencoin’s reward distribution is a hot topic for Ravencoin (RVN) crypto holders this week. While the network offers up vast rewards for its miners, it’s set to greatly reduce these rewards in the next week. And with what the past has shown, it looks like the event will stand to greatly benefit RVN prices.
The network is preparing for a halving event. A halving event is one in which the reward distribution for mining a block on a given chain is cut in half. Bitcoin last halved its rewards in 2020. And while this sounds detrimental to the chain, it actually is quite beneficial for a crypto’s price. Rewards becoming more scarce typically catalyzes big prices jumps for a currency.
Thus, the halving is incentivizing many to pick up their own bag of RVN. Trading volume of the currency is up nearly 400% over yesterday, with $370 million in RVN trading hands. The influx of buying is helping RVN to gain 21% ahead of the halving.
With the halving set to occur on Jan. 11, the event is coming rapidly. Obviously, there are plenty of investors trying to jump on the rocket before it leaves.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.