Can this legacy coin remain relevant in the face of growing competition?
The Litecoin protocol just halved the amount of LTC distributed to miners per block (every 2.5 minutes), similar to the highly anticipated 2024 Bitcoin Block Reward Halving.
Generally speaking, these halving events tend to be bullish for Bitcoin and, to a lesser extent, Litecoin.
However, despite the major Bitcoin milestone not occurring until April 2023 (based on current projections), this still generates far more interest than its younger counterpart.
The data from Google Trends speaks volumes here and makes me question Litecoin’s long-term viability as a worthwhile crypto asset.
A value of 100 represents the maximum popularity for this search term. I expect the ‘Bitcoin halving’ search to reach a new peak within 8-10 months.
Source: Google Trends
Not a good look for the legacy coin. However, as per the above chart, interest in Litecoin (LTC) is increasing again, and I believe it will benefit from a market-wide crypto bull run, which many assume will occur in the next 12-18 months.
This is still a while away, but provided that the network continues chugging along, remains secure, and does not get plagued by regulatory issues courtesy of the US SEC, LTC could set a new all-time high of ~$413, as it did in May 2021.
This sounds like a backhanded compliment per se, as I am banking on it performing well by riding on the success of BTC, ETH and other major crypto assets whenever the overwhelmingly bullish sentiment returns to the space. Yes, it will most likely be a matter of when, if history and growing adoption of crypto globally are anything to go by.
To clarify, I am not trying to s&$t on Litecoin and tarnish its reputation, like many others in the space. For context, LTC was my first crypto purchase. I still hold 80% of that initial amount and will continue doing so, as it represents a fraction of my overall crypto portfolio.
Is it still worth it in 2023?
As per the main question, my answer is…perhaps…in small amounts, not unless Litecoin developers make significant strides to increase the blockchain’s adoption via multiple mid-to-large partnerships worldwide.
Despite the significantly lower price than BTC, even when accounting for approximately four times as much supply, it still trails the #1 asset in this space by a long shot.
However, whilst crypto assets have come and gone over the years, Litecoin has stuck around. However, I feel it has benefitted more from its title as a (trustworthy) legacy coin than the gains associated with trying to get more mainstream adoption, which has been mediocre at best.
Of course, things could change, and it might regain its dominance as a top-10 crypto. The project and its foundation have significant Twitter (X) communities, with over 980K and 215K followers, respectively.
With more than 3,400 companies globally accepting LTC as a payment method, its increasing hash rate, which is now at an ATH of ~792 TH/s, and the integration of the Lightning Network* on its blockchain, which occurred in May are all positive signs for the ecosystem.
Nonetheless, competition in this realm has only intensified, particularly in recent years, so Litecoin can no longer rest on its laurels as a legacy coin and must continue attracting developers, merchants, users and, above all, forge several partnerships with big financial and tech players.
Moreover, more work needs to be done in terms of decentralisation, particularly if it were to ever compete with Bitcoin. Litecoin currently has just under 1000 nodes, as opposed to the foundation crypto’s 16,900 nodes that support its vast network.
*Whilst discussions surrounding the LN generally refer to Bitcoin (which makes sense, considering its long-lasting dominance), it can operate on other chains, such as Litecoin.
Ways to stay up-to-date with Litecoin (LTC)
For the latest information about the protocol, its native coin and related news, check out these resources:
– Litecoin official websites (.com and .org)
– Litecoin Block Reward Halving and NiceHash countdown calculators
– Twitter (X) Litecoin project page
– Twitter (X) Litecoin Foundation page + website
– Charlie Lee (@SatoshiLite), Litecoin’s founder
– LTC’s latest prices on CoinMarketCap, LiveCoinWatch and CoinCode
If you enjoyed this article, I recommend following my Medium page for regular reports about crypto assets, blockchain technology, and more. Feel free to check out my publication as well, Crypto Insights AU.
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- N.B. None of this is financial advice; I am not a financial advisor. You are solely responsible for crypto investments, let alone in any asset clas
- The opinions expressed within this piece are my own and might not reflect those behind any news outlet, person, organisation, or otherwise listed here.
- Please do your research before investing in any crypto assets, staking, NFTs and other product affiliated with this space.
- For transparency, Litecoin (LTC) represents about 1% of my crypto portfolio.