Litecoin (LTC) is one of the biggest cryptocurrency in the market today. It has always ranked among the top 10 cryptocurrencies in terms of market capitalization.
However, due to market fluctuations and recent macroeconomic events, the price of LTC has drastically decreased.
In this article, we will try to explore the Litecoin price prediction graphs shown below to determine whether it's worthwhile for you or not.
LTC has always been referred to as the little brother of Bitcoin. This is no surprise as it was created from the same codebase of Bitcoin (BTC). It was meant to be a lighter version of BTC with some protocol improvements.
Many of BTC's newer features were first implemented on LTC prior to adding them. What makes LTC stand out against BTC is its much faster confirmation times and having significantly fewer transaction fees.
These advantages made Litecoin a better payment system than BTC for daily transactions. Bitcoin was supposed to be the answer to excessive fees and processes when dealing with the traditional financial system.
However, due to its popularity, limited supply, and rather slow development to address scalability problems, it has not gained the mass adoption it was hoping for. This is where LTC comes in, giving a more viable alternative to traditional payment options.
Litecoin Historical Price Analysis
Like many cryptocurrencies, the price movement of Litecoin has historically been correlated with the price movement of bitcoin. As we can see from the graph below, all-time highs and sudden price surges of Litecoin almost always follows that of bitcoin.
This type of price movement is not unique to LTC, as all altcoins have the same typical correlation to Bitcoin (BTC).
Aside from following the price movement of BTC, LTC also seems to follows a 4-year bull cycle where the price of LTC surges after LTC mining rewards halving event. LTC mining rewards are incentives given to those who participate in securing the LTC network.
Each time a halving event occurs, the mining rewards (inflation) is cut into half. This was clearly apparent during the first LTC halving event but less apparent during the second, perhaps due to the general economic downturn caused by the current pandemic and other macroeconomic events.
Litecoin reached its all-time high price during the last great crypto bull run on December 19, 2017, where it reached the amount of 375.29 USD. Its all-time low was on January 14, 2015, where it was trading for $1.11 per LTC.
The current price of LTC at the time of this writing is around 40-45 USD up more than +10 USD from the crypto market flash crash of March 2020. Currently, the price of LTC has generally been trading sideways following the general price movement of BTC.
Current Price, Market Cap, & Supply Details
The current market price of LTC is around 42.46 USD. The price of LTC has been hovering just over 40 USD for the past few months after the March market bloodbath that saw many digital assets losing half of their market value.
Since then, much of the LTC price has been uneventful, which unsurprisingly mimics the price movement of BTC.
The circulating supply of Litecoin is around 65,056,542 LTC, with a max quantity of 84,000,000 LTC. The maximum supply of Litecoin is 4x greater than Bitcoin (21,000,000), which seems to elucidate that the former is not 4x faster than the latter.
This can be corroborated by the fact that LTC has a block time of 2.5 minutes, unlike bitcoin, which needs 10 minutes.
Furthermore, It also means that only around 19 Million coins are left for LTC miners to mine. It is estimated with increasing mining difficulty and the LTC mining halving event, and all Litecoin will be mined in the year 2142 or 122 years from now.
Litecoin (LTC) Future Price Forecast Predictions
Many pundits believe that the whole cryptocurrency market is primed to make another epic bull run. This is based on historical data gathered from more than a decade of cryptocurrency's existence.
These periodic bull runs usually coincide with bitcoin's, which seems to dictate the direction of the whole cryptocurrency market. Moreover, the persisting pandemic has brought down world economies with many looking for safe havens to protect the value of their assets.
This dire situation might be the entry point for cryptocurrency mass adoption, which will propel many of the leading cryptocurrencies to new all-time highs in the near future.
This includes Litecoin, which has been trading sideways, restricted to its immediate resistance and support. This relative inactivity could be a sign of an impending breakout that is more likely to go upward with some expected correction along the way.
With that being said here are some LTC price forecast
Short Term Forecast
Long Term Forecast
Litecoin Price Prediction 2020
The year 2020 is a critical year not only for LTC but also for the entire cryptocurrencies. In the coming months, we will be entering the first anniversary after LTC's second halving event of its mining reward.
Based on historical data, this should mark the start of a bullish trend for LTC with its value exploding by the year's end.
Currently, LTC is trading horizontally, seemingly waiting to take its cue from the price movement of BTC, which has been relatively dormant.
After a period of consolidation, we expect to see the return of price volatility of Litecoin. Days ahead, we expect LTC to gain as much as 7.2% from its current price of 42.56 USD reaching as much as 45.74 USD.
However, we believe that this uptick will not last with the price of Litecoin plummeting to 38.4 USD the next month with a drop of around -10% from its current price.
This will set up a perfect opportunity for traders to take up positions on LTC, which we expect will experience a significant price surge towards the end of the year.
In six months, we expect the price of Litecoin to reach 72.54 USD, which is around 70% increase in its current price. This trend will likely continue towards the first half of 2021, in which we expect the price of LTC to reach 81 USD or 90% of its current price.
Litecoin Price Prediction 2022
The bullish trend for LTC that started in late 2020 and throughout 2021 will continue going forward into 2022.
Somewhere in between the years 2021 and 2022, we may see the price of Litecoin moving towards its previous all-time high of 360.66 USD but will experience a sharp correction almost immediately afterward.
We believe that the price of LTC in 2022 will consolidate in the 136 USD price range.
Litecoin Price Prediction 2025
The year 2025 is one year after the third LTC halving event and BTC's fourth.
If the periodic 4-year bull market persists at this time, we could expect the usual price movements of the general cryptocurrency market will follow with new all-time highs and new higher lows.
However, by this time, significant changes might have happened in the industry, such as regulatory clarity, mass adoption, and changes in the state of global economics.
While not dismissing the possibility of the current situation of the industry turning to the worst, cryptocurrencies, in general, have proven themselves as a very resilient asset class.
This led us to believe that it is highly more probable that market conditions might be more favorable for cryptocurrencies at this time.
This combination of a more friendly regulatory environment, mass adoption underway, and perhaps better global economics will pave the way to a new crypto bull-run never seen before in the crypto industry.
We see the price of LTC moving past its previous all-time high of 360 USD to around 638 USD, which equates to about 1,500% increase to its current value at the time of this writing.
With this new all-time high, we expect some correction, with the price consolidating at around 532 USD in 2025.
Is Litecoin (LTC) a Good Investment?
Litecoin is often described as digital silver by BTC, being referred to as digital gold.
While the comparison of these cryptos to precious stones has been debunked long ago, the historical relationship of gold and silver somewhat represents the relationship between LTC and BTC in terms of their monetary value as well as in popularity.
Bitcoin has emerged as the leading and most popular digital store of value in the industry. This is due primarily to its high value, similar to gold.
It has been increasingly expensive to move BTC around, making it less likely to be used as a medium of exchange again like gold. This is where LTC shines as it is a more viable option to use as currency for daily transactions.
This gives us the notion that LTC has a lot more use cases than BTC, who has become the industry's main store of value. This puts LTC in a better position to achieve mass adoption. With developers who are more open to technological advancements in blockchain technology, we can see LTC technology advancing more rapidly than Bitcoin.
Litecoin is as good of an investment as any other coin that is listed in the top 10 cryptocurrencies by market capitalization. This demonstrates the level of confidence investors have on the project, and with the integration of more advanced features not even found in BTC just beyond the horizon gives would-be “hodlers” (holders) reason to invest in LTC.
How to Buy Litecoin?
Litecoin is one of the most important and most liquid digital assets in the industry. Currently, it is listed in more than 800 crypto markets, most, if not all, of the more significant centralized exchanges (CEX) support LTC. Binance, OKEx, Coinbase Pro, Kraken, Gemini, Bittrex, and other well-established exchanges support Litecoin, making it very easy for anyone who wants to get their hands on LTC quickly.
Many of these exchanges, especially the regulated ones, have fiat on-ramps allowing their customers to buy LTC directly with fiat.
There are also other ways to buy LTC. An easier way to buy Litecoin is by using instant exchanges.
They are buying and selling venues where you can purchase cryptocurrencies without the complicated process of having to deal with order books, which may prove to be a bit complicated for beginners.
There are many instant exchanges in the market today three of the most famous are Shapeshift, Changelly and ChangeNow. They offer the same services and it up to you to decide which among them fits your requirements.
One important thing to remember when buying Litecoin is deciding where to store your LTC. Users with higher security requirements stores their LTC in non-custodial wallets or hardware wallets.
The former is secured by a set of private keys only known by the owner himself/herself. However, if the owner losses these keys, he or she will not be able to recover his or her accounts.
This is similar to hardware wallets with additional physical security features like pushing a button of the hardware wallet to confirm or initiate transactions.
Ome wallet providers allow their users to buy cryptocurrencies directly from their apps. Crypto wallets such as TrustWallet, Atomic Wallet, Coinbase wallet App, Coinomi, and among others are some of the wallets that allow users to purchase Litecoin in their application.
A few of these wallet providers have also integrated fiat gateways that enable users to purchase crypto using cash through their banks, credit, and debit cards.
Alternative Way To Buy Litecoin
More Information About Litecoin
What is Litecoin?
The Litecoin network went live on October 13, 2011. It was the brainchild of Charlie Lee, a former employee at Google who saw the need to develop a lighter version of Bitcoin, which he thinks is better suited for the daily transactions of the everyday people.
It is no secret that Litecoin is essentially a copy of Bitcoin codebase with some modification that allows it to process transactions faster and cheaper.
Litecoin and Bitcoin share the same type of consensus mechanism called Proof-of-Work (PoW). In a nutshell, PoW works by allowing miners (devices with powerful computing capabilities) to solve cryptographic problems to be given a chance of being chosen to write the next block on a blockchain.
In other words, anyone who is participating in the consensus activity has a chance to write the next block or record on the network.
While Bitcoin and Litecoin use the same consensus protocol, they use different algorithms. Bitcoin uses SHA-256 while Litecoin uses Scrypt, which previously thought to be ASIC resistant.
ASICS are powerful and expensive devices designed for mining cryptocurrencies. We will not go into detail what is the difference between the two what is important here is to know that they have different algorithms, and there was an attempt by Litecoin to democratize mining.
Another essential difference between Litecoin and Bitcoin is its Block Time, which simply means the time each network produces a new block or record.
For BTC, it takes 10 minutes while LTC it only takes 2.5 minutes, which is ¼ the required by the former. This makes LTC transaction four times faster than BTC. In addition, the total supply of LTC is fixed at 84 million, which is also four times more than Bitcoin's 21 Million.
If Bitcoin has evolved to become the industry's premier store value, Litecoin differentiates itself from its older brother by positioning itself as a more viable medium of exchange.
The Litecoin foundation describes LTC as the “cryptocurrency for payments,” spelling out precisely what it wants to be. According to them, “Litecoin is a peer-to-peer Internet currency that enables instant, near-zero cost payments to anyone in the world.
The leading organization behind Litecoin is the Litecoin Foundation. It is a non-profit organization registered in Singapore whose members came from different parts of the world.
Their mission is to advance Litecoin for the good of society through the development and promotion of cutting-edge blockchain technology.
Included on its board of directors is Charlie Lee, the creator of Litecoin. He acts as the managing director of the foundation and its primary benefactor (Charlie sold all his Litecoin holdings during the height of 2017-18 crypto bull run).
The foundation team is composed of multinational professionals, volunteers, contributors, ambassadors, and developers led by Charlie, who doubles as its lead developer.
He describes himself as the benevolent dictator Litecoin as he dictates the development direction of Litecoin.
This is in stark contrast to bitcoin, where all protocol changes will have to go through consensus before its implementation. “It takes forever to get anything implemented on Bitcoin,” according to Charlie, unlike bitcoin, they can move forward more quickly.
Cryptocurrency is a nascent industry. It was introduced over a decade ago but is yet to achieve mass adoption. There are various reasons why it has yet to reach this type of market maturity.
There are many barriers to entry, especially for new users who are not yet familiar with how to deal with this emerging asset class.
This is why partnerships are vital. They can help spread awareness about Litecoin while at the same time, expand the use case of Litecoins by allowing holders new ways how to spend their LTC.
Take, for example, Travala, one of the partners of the Litecoin foundation. It enables LTC holders to book at over 500K hotels in 210 countries, covering over 82,000 locations.
Litecoin foundation is also partnered with fiat-crypto payment processors like Aliant Payments and Coingate, both of these payment processors allow merchants to accept Litecoin.
It serves as a payment intermediary where it automatically converts Litecoin into fiat automatically and deposits the fiat into the merchant's account.
There is a whole list of partners Litecoin has over its website. What is important to note is that these partnerships help increase the awareness and popularity of Litecoin as well as its use case.
Through these partnerships, the Litecoin foundation hopes to reach mass adoption.
The main focus now of Litecoin developers is to improve the fungibility and privacy features of Litecoin.
They plan to do this by adding Mimblewimble. This blockchain design employs a new way of storing and structuring transactions with the main aim of increasing privacy and better network scalability.
According to Charlie Lee, they chose Mimblewimble because it scales much better than other privacy-focused protocols, like Monero or Z-cash.
Other upcoming technologies are in the pipeline for Litecoin. However, the main thrust of the Litecoin developers right now is what we have discussed above.
Other technologies include second layer scalability solution Lightning Network (LN), Atomic Swaps, and Colored Coins.
Lightning Network (LN) is just another network that allows instant transactions and reduced fees; it is currently under development and has not reached the kind of reliability required to make them a viable option.
Atomic Swaps allows users to trade on the coin for a different coin without going through an exchange, and it is also called cross-chain swaps. This is built on top of the LN network hence still under development.
Another exciting feature being developed are colored coins. Unfortunately, Litecoin developers do no have this feature high on their list. It allows LTC to be repurposed and be attached to an asset similar to a tokens issuance platform.
However, like the others, these future features have been pushed back to give way for the implementation of MimbleWimble.
Throughout the years, Litecoin has consistently remained in the Top 10 cryptocurrencies by market capitalization and for good reason. Like Bitcoin, Litecoin has been working non-stop without any major downtime, and its security has never been compromised.
While some might consider it as a boring asset, its stability and the reputation it has gained throughout the years more than makes up for it.
Just recently, Grayscale Investments, the world's largest digital currency manager, has gained approval from FINRA to launch a Litecoin Trust. This allows high-net-worth investors and institutional accounts to gain exposure to Litecoin.
More importantly, this demonstrates the immense confidence of not only retail investors but institutional investors to Litecoin.
If you are an investor looking for a stable digital asset to invest in with a long term horizon, then perhaps Litecoin might be the right cryptocurrency you should consider.