What's next for Litecoin?
Key Takeaways
- The amount of Litecoin mined per block is set to halve on August 2 2023.
- Investors have been buying up the crypto, even if the price of LTC has gone down over the last month or so.
- Litecoin is one of the longest-lasting altcoins, but can the halving give it a boost?
Litecoin, which was founded in 2011 as an alternative to Bitcoin (BTC), is one of the longest-serving altcoins. The crypto has earned itself a following and, although it rarely makes the headlines, it can be seen as a strong and reliable crypto performer.
Interest in Litecoin has risen in 2023 as it builds towards its latest halving. On August 2, the amount of LTC available to its miners will go down by 50% in a bid to keep the price up.
But what is Litecoin (LTC)? How does Litecoin work? Let’s see what we can find out, and also take a look at some of the Litecoin Price Predictions that were being made as of August 1 2023.
From the Whitepaper
In its technical documentation, or whitepaper , Litecoin describes itself as the “silver to Bitcoin’s gold” and as a “real alternative” to BTC.
It says: “Litecoin is a peer-to-peer Internet currency that enables instant, near-zero cost payments to anyone in the world. Litecoin is an open source, global payment network that is fully decentralized without any central authorities. Mathematics secures the network and empowers individuals to control their own finances.
“Litecoin features faster transaction confirmation times and improved storage efficiency than the leading math-based currency. With substantial industry support, trade volume and liquidity, Litecoin is a proven medium of commerce complementary to Bitcoin.”
Recent updates from Litecoin
Litecoin is about to undergo a halving. This means that, on August 2, the amount of Litecoin people can mine will drop from 12.5 LTC per block to 6.25 LTC per block.
Data from on-chain analytics company Santiment found that larger LTC holders had been accumulating Litecoin in the run-up to the halving.
Furthermore, the number of new Litecoin wallets went up in anticipation of August 2’s event.
But what is Litecoin? Let’s take a look.
Litecoin (LTC) Explained
Bitcoin is the original cryptocurrency. However, Satoshi Nakamoto’s brainchild is not without its disadvantages. For instance, the Bitcoin blockchain can be slow and unwieldy, meaning that people not only have to wait longer for their transactions to be carried out, but it also costs them more money.
Litecoin, which was founded in 2011 by computer scientist Charlie Lee, aims to be a faster, easier, and cheaper, version of Bitcoin.
The platform exists primarily to support its native coin, which is known by the ticker handle LTC.
In May 2023, however, Litecoin launched its LTC-20 tokens, cryptocurrencies based on the Litecoin blockchain, as an experiment. LTC-20s could, potentially, be the system’s equivalent of non-fungible tokens (NFTs).
How Litecoin Works
Litecoin, like Bitcoin, uses a Proof-of-Work consensus mechanism. This means that people add blocks to the blockchain, verify transactions, and earn rewards, by solving increasingly complex mathematical equations.
What makes Litecoin a little different to Bitcoin is that Litecoin uses a mining protocol called Scrypt. This means that transactions are split into two parts which makes them a bit easier – or lighter – and quicker.
As well as rewarding miners, Litecoin can be used to buy some things outside of the crypto sphere, and it can also be bought, sold, and traded on exchanges.
LTC Price History
Now, let’s examine some of the highlights and lowlights of the Litecoin price history . While we should never take past performance as an indicator of future results, knowing what the coin has achieved can provide us with some very useful context if we want to make or interpret a Litecoin price prediction.
For the first few years of its existence, LTC hovered between $1 and $5. The cryptobubble of late 2017 and early 2018 gave it a boost, and it rocketed to more than $300 in December 2017.
It dropped after that as the market experienced a so-called crypto winter, but in early 2021 the market picked up again. LTC responded well and it reached its all-time high of $412.96 on May 10. After that, though, it slipped down. LTC closed 2021 at $144.56.
2022 was a bad year for crypto, and LTC fell significantly. In the wider context of the overall crypto market, though, it was one of the better performers. A series of market crashes saw it drop below $45 in the middle of June and, although there was a small recovery, it was worth $67.79.
This meant that it fell by nearly 55% across the year. However, when we consider that the market dropped by almost 65% in 2022, LTC was an overperforming crypto.
In 2023, the market has got better, and so has Litecoin’s price. It broke past $100 early in the year. It experienced peaks and troughs, falling below $70 following the collapse of the Silvergate bank in March.
There was a quick recovery, but the coin fell to a low of $72.02 on June 14 when the market struggled following the announcement that the United States Securities and Exchange Commission (SEC) was suing the Binance and Coinbase crypto exchanges.
LTC made a recovery, reaching a high of $114.50 on July 3. After that, though, it dropped again and, on August 1 2023, LTC was worth about $90.55.
At that time, there were 73.4 million LTC in circulation out of a total supply of 84 million. This gave the coin a market cap of about $6.6 billion, making it the 11th-largest crypto by that metric.
Litecoin Price Analysis
Litecoin has been rather up and down over the last couple of months.
Its July 3 high was nearly 60% higher than its June low, but since then it has dropped about 20% in the weeks since then. It is down by a little over 4% from the $94.48 it traded at before the SEC announced it was suing Binance on June 5.
On the other hand, it is up 33% since the start of the year.
On August 2, it started the day at about $92.25. It then fell nearly 5% to a little below $88 before recovering to around $90.55.
However, it looks worryingly likely that it is in a downtrend. Its August 2 low was around the same level that a price rise started from on July 24. It reached a peak of $95.69 on July 30, but its fall took about a third as long as its climb.
In fact, LTC has been in an overall downtrend since it reached its monthly peak on July 3. If we look at the price since then, we can see the trend line dropping, although the price itself has fallen in a series of waves.
It is possible that the next upturn could see it break past $100 briefly. Regardless of this, though, it looks possible that LTC could drop to $75 at some point in the near future.
Litecoin Coin Price Prediction
With that all said and done, let’s examine some of the Litecoin price predictions being made on August 1 2023. It is crucial to bear in mind that price forecasts, particularly for a potentially volatile asset like cryptocurrency, often turn out to be inaccurate. Additionally, please remember that many long-term crypto price predictions are generated using algorithms, which means they can change at any time.
First, CoinCodex had a short-term Litecoin price prediction that said the coin would fall to $89.58 by August 5 and continue its decline, falling to $77.73 by August 30. The site’s technical analysis was, unsurprisingly, bearish, with 20 indicators sending discouraging signals and just nine making bullish ones.
Litecoin Forecast for 2023
In terms of other Litecoin price predictions for 2023, CaptainAltCoin was also bearish. It said LTC would drop to $64.74 by October and close the year at $78.36. PricePrediction.net said it would get to $110.90. DigitalCoinPrice forecast Litecoin to trade at $181.97 this year.
Litecoin Forecast for 2025
DigitalCoinPrice made a Litecoin price prediction for 2025 that said the coin would trade at $306.64 that year. CaptainAltCoin said it would be worth $196.56, while PricePrediction.net had it at $196.56 in two years time.
Litecoin Forecast for 2030
Moving forward to a more long-term Litecoin price prediction for 2030, PricePrediction.net was out in the lead, forecasting LTC to trade at $1,472.54. DigitalCoinPrice thought the coin would be worth $919.34 that year. CaptainAltCoin had an LTC price prediction that saw the crypto reaching $491.41 by the start of the next decade.
Is Litecoin a Good Investment?
It is difficult to tell. While Litecoin has always seemed to perform comparatively consistently – and even outperformed the market last year – it isn’t exactly a glamorous coin. A lot will depend on how August 2’s halving is received by investors.
We will also have to see if LTC can get some more real world uses which could help bring it to the attention of a new generation of potential holders.
As ever with crypto, you will need to make sure you do your own research before deciding whether or not to invest in LTC.
Will Litecoin go up or down?
No one can really tell right now. While the Litecoin crypto price predictions are largely positive, price predictions have a well-earned reputation for being wrong. Keep in mind, too, that prices can, and do, go down as well as up.
Should I invest in Litecoin?
Before you decide whether or not to invest in Litecoin, you will have to do your own research, not only on LTC, but on other, related, coins and tokens such as Bitcoin Cash (BCH) and Bitcoin SV (BSV). Either way, you will also need to make sure that you never invest more money than you can afford to lose.
FAQs
How many Litecoin are there?
On August 1 2023, there were 73.4 million LTC in circulation out of a total supply of 84 million.
Will Litecoin reach $1,000?
It might do but, if it does, it won’t get there for some time yet. PricePrediction.net says it could reach four figures in 2029, while DigitalCoinPrice says it will get there in 2031.
It is worth remembering that Litecoin has never traded at $1,000. Its highest ever price, which it reached in May 2021, is $412.96.
What is Litecoin used for?
LTC is used to reward miners on the Litecoin blockchain. It has a number of real-world uses, and can also be bought, sold, and traded on exchanges.
Disclaimer
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
