Litecoin is one of the most traded digital assets with a total market cap of more than 8B at the time of writing. We have had it integrated into Trustee since time immemorial, so breaking down its price dynamics is about time.
How high will Litecoin go, why is Litecoin going up, should you expect it to fall down dramatically? Let’s find out.
Why is Litecoin going up
As one of the first cryptocurrencies that appeared immediately after Bitcoin, Litecoin aimed to address the shortcomings of its older brother.
Make ASIC mining harder. The scrypt algorithm used by Litecoin requires large volumes of RAM, which makes running multiple miner software instances a lot harder. The reason behind this is to make mining more user-friendly, i.e., it is meant to run on a conventional PC rather than on ASIC farms.
Generate blocks faster. The Bitcoin network generates a new block every 10 minutes. Litecoin cut that time in four, giving off new blocks every 2.5 minutes. It takes 6 blocks to verify a transaction, which means that it will go through in approximately 15 minutes.
In other words, the Litecoin network is faster. As you can see, Litecoin was designed to be generally better than Bitcoin, which determines how high can Litecoin go in the long run.
What else is different? The total supply of Litecoin is four times bigger than Bitcoin’s. At the same time, the halving period is four times longer (in blocks). Considering that block generation is four times faster compared to Bitcoin, we get almost perfectly synchronized halving dates and the dates when mining will stop.
Keep supporting the network. Litecoin Foundation continues to engage in the development of the network and strike new deals across the globe. That is something that Bitcoin cannot boast because Satoshi Nakamoto stated that they step away from the development. They never even touched their share of BTC that was mined in times when the block reward was 50 BTC and each coin traded for cents.
Why is Litecoin going up? The other reason for it is that money is being printed faster than the crypto is being mined. Besides, the max supply of crypto is limited. If Bitcoin is compared to gold, Litecoin is compared to silver for the same properties: it is scarce, limited, and increasingly harder to mine.
How high can Litecoin go
Now that we know how Litecoin is different from Bitcoin, let us fantasize a little about its potential. How high will Litecoin go? Well, it is easy to think that if there can ever be four times more LTC than BTC in existence then the value of LTC is, sort of, diluted. So a litecoin must cost at least one fourth of a bitcoin. Why is it not the case?
The truth about the market is that it is sentiment- or narrative-driven. The Bitcoin rush is largely a global FOMO run. Bitcoin appeared in the arena before any other crypto, then it got involved in the Silk Road scandal… long story short, it became legendary, and some people still idealize it despite derelict technology. Look how many Bitcoin forks there are. Bitcoin Cash, Bitcoin Gold, Bitcoin SV – all of these demonstrate that there is something not quite right with the original good old bitcoin.
Anyways, Bitcoin will be the trendsetter in the market in future. For how long? It’s hard to tell. Even though we can’t shake off the influence of Bitcoin, there are lots of promising digital currencies that have secured themselves a niche. Litecoin is one of them, which backs up its growth and stability.
For now, the market is still in the correction phase. We know, every trader impatiently looks for an answer, ‘When will Litecoin go up?’ Not until the general disturbance settles down. Fear, uncertainty, and doubt are not the best friends of profitable trade; Bitcoin might keep dragging most coins down by the end of the year. We must be ready for that because we all remember 2017. Can you outlast $10,000 per BTC? Then crypto-spring is going to compensate for the losses!
Where is Litecoin going
Although no such thing as 100% accurate price prediction exists, we have reviewed a couple of technical analysis articles regarding the question, ‘How much will Litecoin be worth?’
As you understand, the price predictions are based on statistical data: the events that already happened. A particular model explains or rationalizes the past price changes but it is not so good for predicting the future.
For example, here is one overview of price predictions: TradingBeasts promise it to be at least $300 in February 2022 and keep crawling up. Wallet Investor, on the other hand, is more pessimistic and do not trust the price to break through the $350 threshold in 2022. Coin Price Forecasts believe that Litecoin price will fluctuate around $1,200 ($800 low, $1,500 high!). See the dramatic difference? This is what they call an ‘expert opinion’!
We can only suggest: be your own expert and always take the risks that you can manage.
Where is Litecoin going? Price-wise, Litecoin is always headed upwards, just like any proof-of-work limited supply crypto.