Litecoin, the cryptocurrency created by Charlie Lee, remains one of the most famous, although it is no longer included in the top 15 largest coins in terms of capitalization. So is there a chance that the asset will return to the list of market leaders? Let’s try to find it out in the new LATOKEN review.
Litecoin is 10 years old now
On October 12 2021, exactly ten years have passed since the creation of the Litecoin cryptocurrency. Litecoin uses the same programming code as Bitcoin, with some differences in characteristics. The altcoin creator, Charlie Lee, said that the coin is needed not to replace Bitcoin but to supplement it. If Bitcoin is called “digital gold”, then Litecoin is “digital silver.”
The total emission of Litecoin, as in the case of the first cryptocurrency, is limited. However, if the number of bitcoins ultimately reaches 21 million coins, in the case of LTC, the figure is much higher — 84 million coins. Litecoin also offers cheaper and faster transactions. The policy of the project is as follows: Bitcoin is needed as a store of value, and Litecoin is a tool for everyday calculations.
However, over time, the popularity of Litecoin has declined. This can be evidenced by the fact that the cryptocurrency is only 16th on the list of the largest tokens in terms of capitalization. Its market valuation is currently $11 billion, while the capitalization of Dogecoin, for example, is at $29.5 billion. In comparison, the market leaders Bitcoin and Ethereum are valued at $1 trillion and $416 billion, respectively.
Perhaps LTC has lagged behind other cryptocurrencies in terms of development and marketing promotion. In 2017, they saw the prospect of mass adoption in Litecoin, but now many people prefer to use other cryptocurrencies.
When the Bitcoin network experienced congestion and sending funds using BTC required a long wait, the mempool was overloaded, and Litecoin was used as a means to send funds quickly. It was popular, it had liquidity, and it was easily and quickly converted to bitcoins later. Now Bitcoin has no such problem with an overloaded mempool. Solutions of the second level, such as the Lightning Network, have appeared, allowing transactions to be executed almost instantly.
Other possible reasons. LATOKEN Review
Is the Litecoin Foundation having funding problems? Does the project lack a vision for the systematic development of the marketing strategy? It is hard to say. However, there is always the possibility that Litecoin will sooner or later be able to break out of the top 5 or go into a robust growth cycle.
LATOKEN never ceases to remind its users, traders, and crypto enthusiasts that cryptocurrency is a highly volatile asset. We constantly remind you about it in our LATOKEN reviews and other articles. Extreme volatility often has a negative connotation because many people associate volatility with market chaos, uncertainty, and losses. However, in the cryptocurrency market, changes might also happen for the better. Besides, the good news is that cases of extreme price volatility are rare. Instead, what we see in the markets on a daily basis is moderate, healthy volatility.
Is Litecoin price related to Bitcoin price?
There is also an opinion that overcoming the historical maximum of LTC depends on whether Bitcoin will be able to renew its historical maximum.
Litecoin can also turn out to be “anything you can expect from” coin. We would like to remind you that L3+ miners, which are used for altcoin mining, cost $5,000 in 2017, and in 2019 their official price was about $49. The price of the equipment is currently more than $1,000. It might be possible that approximately the same dynamics can be expected from Litecoin!
If you want to start trading LTC, you can always do it on the LATOKEN exchange!START TRADING LTC
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LATOKEN crypto exchange does not provide any investment, tax, legal, or accounting advice. This article is written for informational purposes only. Like other assets, cryptocurrency is subject to market risk. Please do your own research and trade with caution.