Litecoin (CCC: LTC-USD) has been one of the strongest cryptos in 2021, despite its recent price drop. LTC is up more than 60% so far this year.
Cryptocurrencies, like marijuana stocks or electric car firms, may appear to be the hottest new investment craze. Indeed, the volatility of digital currencies may be too much for risk-averse investors to handle.
Short-term volatility, on the other hand, is less important to young investors with time on their hands than long-term potential. Without a doubt, Litecoin has a lot of long-term potential. LTC-USD is now ranked No. 11 among thousands of cryptos. LTC’s market value is roughly $13.6 billion.
Market caps of several other cryptos and stocks
- Bitcoin (CCC:BTC-USD) — market cap of $735 billion, and down 0.3% YTD;
- Ethereum (CCC:ETH-USD) — market cap of $316 billion, and up 122% YTD;
- Cardano (CCC:ADA-USD) — market cap of $56 billion, and up 492% YTD;
- Polkadot (CCC:DOT-USD) — market cap of $26 billion, and up 192% YTD;
- Albertsons (NYSE:ACI) — market cap of $8.7 billion, and up 6.5% YTD;
- Ford Motor (NYSE:F) — market cap of $49.5 billion, and up 41% YTD;
- Kinross Gold (NYSE: KGC) — market cap of $10.3 billion, and up 11% YTD;
- Nokia (NYSE:NOK) — market cap of $29 billion, and up 30% YTD.
This short table above shows us how far the crypto space has grown in the past decade. These are taking over the size of some of the established companies listed on the Big Board.
“There has never been so much financial confidence placed into the network,” Litecoin’s management recently stated. “and other concrete data indicators like as transferred values and transaction counts suggest utilization is growing.” These figures demonstrate that these prices have a solid foundation and that this isn’t merely speculative.”
In today’s essay, we’ll look at what Litecoin might anticipate for the remainder of the year. In particular, considering the pressure on cryptos in the second half of May. Most cryptocurrencies are expected to take a vacation in the coming days. If you’re a long-term investor with a risk/reward profile that permits you to acquire cryptos, you might want to consider investing in LTC at current prices.
Litecoin vs. Bitcoin
Litecoin was founded in 2011 by Charlie Lee, a former Google executive (NASDAQ:C, NASDAQ:GOOGL). It shares many of Bitcoin’s characteristics as a Bitcoin-derived protocol. Lee was more concerned with speed, efficiency, and distribution than with Bitcoin. As a result, Lee raised the overall supply and sped up the addition of new blocks to the network.
“Litecoin will create four times as many coins (84 million), and transactions are uploaded to the network four times faster than Bitcoin (2.5 minutes against Bitcoin’s 10 minutes),” according to research by Tel Aviv University’s Neil Gandal and Hanna Haaburda of the Bank of Canada.
Litecoin mining is substantially quicker than Bitcoin mining. The lightning-fast transactions of Litecoin have aided its rise.
PayPal (NASDAQ:PYPL) introduced “Checkout with Crypto” in March. PYPL customers in the United States may now pay with Bitcoin, Litecoin, Ethereum, and Bitcoin Cash (CCC:BCH-USD). Both Mastercard (NYSE:MA) and Visa (NYSE:V) have taken moves to integrate cryptocurrency into their payment infrastructures. Such ‘endorsement’ from big corporations in the digital payment field, understandably, is fueling positive momentum for cryptocurrencies like Litecoin.
LTC, like Bitcoin, employs the proof-of-work (PoW) method to “avoid double-spends.” PoW, on the other hand, is not environmentally friendly because it takes a lot of energy to create a single token. LTC supporters are hopeful that it will soon switch to a proof-of-stake system, which will make it more sustainable.
The Bottom Line on LTC
The impact of cryptography on the environment has recently become a hot topic. Tesla (NASDAQ:TSLA) CEO Elon Musk has stated that the business will no longer accept Bitcoin as payment. Since then, investors in BTC-USD and other cryptocurrencies have pressed the “sell” button. In the next months, we’re sure to hear more about cryptocurrencies’ environmental effects.
Despite recent profit-taking in cryptocurrencies such as LTC, Litecoin’s growth prospects remain generally positive. The demand for digital assets continues to rise.
Its price, on the other hand, is significantly associated with the price of Bitcoin. As a result, expect some short-term volatility. Purchase-and-hold investors, on the other hand, may see price drops as a good chance to buy LTC for the long term.
Investors seeking a fund that invests in LTC might check into the Grayscale Litecoin Trust (OTCMKTS: LTCN).
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