{"id":4165,"date":"2020-09-01T15:35:59","date_gmt":"2020-09-01T15:35:59","guid":{"rendered":"https:\/\/paybis.com\/blog\/?p=4165"},"modified":"2024-08-14T11:17:43","modified_gmt":"2024-08-14T11:17:43","slug":"litecoin-price-prediction","status":"publish","type":"post","link":"https:\/\/paybis.com\/blog\/litecoin-price-prediction\/","title":{"rendered":"Litecoin Price Prediction – Getting Ready For A Breakout?"},"content":{"rendered":"\n

Litecoin has been relatively quiet in this rather eventful year for crypto. The popular cryptocurrency is still struggling to recover from the March bottom, while <\/span>Defi<\/span><\/a> projects are getting most of the attention of new investors.<\/span><\/p>\n\n\n\n

For many, Litecoin is simply one big question mark. While the LTC foundation is releasing updates on a regular basis, the community is not as strong as it once was. When looking at the project, it is really hard to make a long-term prediction as many factors can affect its future. <\/span><\/p>\n\n\n\n

In this article, we will take a look at LTC\u2019s history and past performance, in order to set a realistic Litecoin price prediction for the upcoming <\/span>bull market<\/span><\/a>. We will also touch upon expert opinions and useful resources that you can use. Before we delve into our predictions, let\u2019s briefly introduce Litecoin.<\/span><\/p>\n\n\n\n

Understanding Litecoin<\/span><\/h2>\n\n\n\n

Litecoin (LTC) is a fork of Bitcoin’s protocol and proclaims itself as “the silver to Bitcoin’s gold.” Code-wise, Litecoin is nearly identical to Bitcoin with a few minor differences. Similar to Bitcoin, Litecoin utilizes <\/span>Proof-of-Work<\/span><\/a> (POW) for <\/span>consensus<\/span><\/a> and allows users to transfer value to one another without relying on any third parties.<\/span><\/p>\n\n\n\n

Furthermore, the coin is seen as one of the most stable cryptocurrencies in the market, as it has performed well over the past 9 years and is consistently ranked in the top 10, according to market capitalization.<\/span><\/p>\n\n\n\n

Who developed Litecoin?<\/span><\/h3>\n\n\n\n

Litecoin was created by computer scientist <\/span>Charlie Lee<\/span><\/a> in 2011, with the goal to improve upon Bitcoin\u2019s bottlenecks (scalability & fees). <\/span><\/p>\n\n\n\n

In 2013, Lee left a prominent position in Google and began working as an engineer at Coinbase. It was during this time that the exchange decided to list the coin he created. In 2017, the founder decided to leave his career at Coinbase and focus all his efforts on the development and adoption of Litecoin. He is currently the head of the <\/span>Litecoin Foundation <\/span><\/a>and remains active in the community.<\/span><\/p>\n\n\n\n

What is Litecoin\u2019s value?<\/span><\/h3>\n\n\n\n

Litecoin is the <\/span>7th most popular cryptocurrency<\/span><\/a> at the time of this writing. It is available in more than 300 exchanges with multiple trading pairs, the most common of which are against Bitcoin (LTC\/BTC) and Tether (LTC\/USDT). The coin\u2019s value is purely demand-driven, so its price is determined by the markets\u2019 perceived value.<\/span><\/p>\n\n\n\n

Aside from that, it is important to note that similar to Bitcoin, Litecoin experiences reward halvings every 4 years. The latest halving did not have a significant effect on the coin\u2019s price, as did the previous events before that. The next Litecoin halving will occur in 2023, with block rewards decreasing from 12.5 to 6.25 LTC per block.<\/span><\/p>\n\n\n

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Useful links<\/h2>\r
    \r
  • \r LTC to USD <\/a><\/li>\r
  • \r LTC Calculator <\/a><\/li>\r
  • \r Litecoin Wallet <\/a><\/li>\r
  • \r Litecoin Price <\/a><\/li>\r <\/ul>\r<\/div>\r\n\n\n

    Litecoin vs Bitcoin – What are the differences?<\/span><\/h3>\n\n\n\n

    Even though Litecoin is based on Bitcoin\u2019s code, it has several unique characteristics:<\/span><\/p>\n\n\n\n

      \n
    • Faster block confirmation<\/b> – The Litecoin network confirms transaction blocks 4 times faster than Bitcoin, with the average completion time being 2.5 minutes. This means that transfers are completed quicker and the network is able to handle more transactions simultaneously.<\/span><\/li>\n\n\n\n
    • Total coin supply<\/b>. Litecoin has a total of 84.000.000 coins, while Bitcoin has 21.000.000 coins. Note that this number refers to the maximum supply, and not the amount that is currently circulating the market.<\/span><\/li>\n\n\n\n
    • Hashing algorithm<\/b>. Litecoin utilizes a more democratic POW algorithm known as <\/span>Scrypt<\/span><\/a>, while Bitcoin uses <\/span>SHA-256<\/span><\/a>.<\/span><\/li>\n\n\n\n
    • Different Public Addresses<\/b>. Litecoin <\/span>public addresses<\/span><\/a> start with an \u201cL\u201d or \u201cM\u201d. Bitcoin addresses begin with \u201cbc1\u201d, \u201c3\u201d or \u201c1\u201d.<\/span><\/li>\n<\/ul>\n\n\n\n

      Analyzing Litecoin\u2019s historic performance<\/span><\/h2>\n\n\n\n

      While the past is no indication for the future, we can derive some useful information that will help us get a better understanding of where LTC is headed.<\/span><\/p>\n\n\n\n

      Price action<\/span><\/h3>\n\n\n
      \n
      \"litecoin<\/path><\/svg><\/a><\/picture><\/figure><\/div>\n\n\n

      Similar to most cryptocurrencies, Litecoin has had very volatile price fluctuations over the last 3 years. Following its <\/span>all-time high<\/span><\/a> ($352), it gradually declines in value over the period of a year, until it finds a bottom at $24. It is during this time that the Litecoin community becomes less engaging in social media groups. Looking back, this happened for three reasons:<\/span><\/p>\n\n\n\n

        \n
      1. The slow and steady price decrease<\/span><\/li>\n\n\n\n
      2. Charlie Lee selling all his LTC holdings<\/a> at peak price<\/span><\/li>\n\n\n\n
      3. Interest shifting towards other cryptocurrency projects.<\/span><\/li>\n<\/ol>\n\n\n\n

        2018-2019<\/h4>\n\n\n\n

        After the price bottoms out, the whole market experiences a recovery shortly after the December lows. Over the following 6 months, Litecoin experiences a 480% recovery back to $140, outperforming Bitcoin\u2019s 337% growth over the same period.<\/span><\/p>\n\n\n\n

        2019-2020<\/h4>\n\n\n\n

        From July 2019 to December of the same year, the whole market experiences a decline, and Litecoin follows suit. Note that, in August 2019, Litecoin undergoes a reward halving which has little to no effect on the price.<\/span><\/p>\n\n\n\n

        Things start changing in January of 2020, as the whole crypto market starts preparing for the upcoming Bitcoin halving<\/a>. This recovery pattern is surprisingly similar to past Bitcoin halvings, and the media makes sure to point it out. With increased attention from the public, Litecoin\u2019s price recovers back to $81.<\/span><\/p>\n\n\n\n

        The sharp price decline that follows is directly related to the COVID-19 pandemic, which has most investors turning to cash to protect themselves. The price finds a local bottom at $34 and has been struggling to recover ever since. Currently priced at $62, Litecoin has recovered proportionally less than most top coins in the top 10 list of CoinMarketCap.<\/span><\/p>\n\n\n\n

        When measured on a metric scale, Litecoin has been making lower highs for the past 3 years. It is slowly reaching a consolidation point that will either lead to a breakout or another leg down.<\/span><\/p>\n\n\n\n

        Some <\/span>Litecoin enthusiasts<\/span><\/a> speculate that, if history is to repeat itself, this consolidation could lead to new all-time highs.<\/span><\/p>\n\n\n

        \n
        \"litecoin<\/path><\/svg><\/a><\/picture><\/figure><\/div>\n\n\n

        According to them, there is a possibility to see the price increase to $4500 per Litecoin by the end of 2021. We tend to disagree with this prediction, and we\u2019ll explain why in the following chapters.<\/span><\/p>\n\n\n\n

        Transaction volume<\/span><\/h3>\n\n\n\n

        In order to better understand transaction volumes, we need to look at the performance of top exchanges. Just a few months ago, Binance <\/span>reported<\/span><\/a> its highest daily trading volumes ever, surpassing the volumes of late 2017.<\/span><\/p>\n\n\n\n

        Evidently, the demand to trade cryptocurrencies is increasing and, as a result, so does the media coverage.<\/span><\/p>\n\n\n\n

        Additionally, just a few weeks back, the founder of Binance, Chanpeng Zhao, mentioned that the exchange experienced an all-time high in terms of system traffic.<\/span><\/p>\n\n\n\n

        \n

        We are seeing ATH in terms of system traffic. Higher than Dec 2017. Should be interesting to see what happens next.<\/p>\n\n\n\n

        \u2014 CZ Binance (@cz_binance) August 17, 2020<\/a><\/p>\n<\/blockquote>\n\n\n\n