The performance of Litecoin to top seventh on the list of the world’s greatest cryptos is worth mentioning. It has a market capitalization of $13.8 billion, hence correlating well with Bitcoin and Ethereum.
That said, this article delves into why Litecoin would most likely do well in 2022 and further down the line.
Great Competition with Bitcoin
Many cryptocurrencies have found it hard to compete with Bitcoin since its launch in 2009. However, Litecoin was launched in 2011 as one of the earliest cryptos to compete with Bitcoin. LTC has been tracking BTC’s performance favourably, albeit not as aggressive as one would expect.
For instance, Bitcoin’s value has been up since 2019 for the past two years. Litecoin’s performance is also progressive, but not as much as the top coin. Its value has increased by 3.25 times from $61.57, as recorded two years back. Simply put, Litecoin competes well with Bitcoin but lags with 50% value. Perhaps it’s because its features have some core differences like longer block times compared to Bitcoin. The supply cap is four times greater than the top coin. One wouldn’t help but wonder if these two reasons contribute to Litecoin’s lagging performance.
Interestingly, the numbers might not surprise Litecoin’s community because it was created to be the “silver” alongside Bitcoin, which is the “gold.” Litecoin has underperformed on several instances but still maintains its trajectory.
Balanced Supply and Demand Curve
Since Litecoin has mined more coins than Bitcoin, it has a similar distribution feature, whereby the supply of the coins is halved after several years. The primary intention is to maintain Litecoin’s stability in the market by balancing its supply and demand curve. The trajectory remains bent upwards towards higher market prices as Litecoin tokens decrease in supply.
The Coin’s Recent Progression
Litecoin has been making headlines in the cryptocurrency market and the finance world at large. For instance, its developers recently announced a mega partnership with VISA to issue LTC debit cards. As an investor, all you have to do is deposit money into your secure Litecoin Visa account using your Litecoin balance. So, as your Litecoin balance grows, you keep earning more on your LTC Visa card in dollars.
The good thing is that the debit card does not limit you to only Litecoin. If you wish to trade other cryptocurrencies like Bitcoin, Ethereum, or XRP, the card will come in handy. It is also applicable to all financial merchants that allow payments with Visa. They are about 50 million worldwide, which is an added advantage. If this concept is appreciated a little more beyond its current status, it will shake up traditional financing to digitize transactions more. As an alternative method, a crypto exchange can be used to buy LTC with paypal.
Despite Litecoin’s dragging performance in the cryptocurrency market, it is clear that it has boasted several innovative developments since its launch. Investors hope that these features and more would help to make up for the performance lag against Bitcoin. If there is an opportune moment to invest in Litecoin, perhaps it is now.
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