Litecoin, which originally appeared in 2011, was one of the earliest Bitcoin alternatives. In the realm of cryptocurrencies, Litecoin has some appeal. Many cryptos are just unable to demonstrate any kind of value, incremental progress, or anything else that would entice reasonable investors.
Litecoin allows transactions to be completed four times faster than Bitcoin transactions (CCC:BTC-USD). As a result, it does provide an iterative improvement. At the very least, it has that.
Is there, however, a compelling investment argument for LTC right now?
Opportunity Exists
Given LTC’s recent drop in tandem with the larger cryptocurrency market, LTC bulls have a clear chance to purchase the dip. Simply said, LTC has plummeted like a stone in May. It surpassed $400 on May 9 and hit an all-time high. It has dropped to $142 by May 23.
That’s a 65 percent drop in value. It’s easy to get caught up in all the “to the moon” zeal when you read that a number of people have gone big and reaped tremendous rewards. But I believe that this current batch of adjustments will reveal many more tragic and unknown tragedies. Surely, some Litecoin investors have suffered greatly in recent weeks.
In any event, I’m getting ahead of myself. We can use LTC’s price history to help us analyze this buy-the-dip opportunity.
Litecoin Price Movement
The price of Litecoin has been charted from May 31, 2018. It was worth $117.48 at the time. That’s a big cry from the current entry pricing for many cryptocurrencies. Many of the transactions are for fractions of a cent. Even well-known coins like Dogecoin (CCC:DOGE-USD), Ripple (CCC:XRP-USD), and Stellar (CCC:XLM-USD) are available for under $1.
So, if an investor bought LTC on May 31, 2018, and sat back, where would they be today? As of May 31, 2021, the same $10,000 invested on that day would have grown to $14,749.00. That’s a profit of 47.5 percent. Not terrible, but the wild fluctuations in the market may have killed that same investment.
Overall, I don’t believe LTC will attract much investment in the near future. This is due to the fact that it is highly pricey and lacks much appeal.
Much of the same idea can be seen in Josh Enomoto’s opinion on Litecoin. He gives a graph demonstrating that there is minimal interest in trading LTC in the $100 to $200 price range. After those already subpar demand levels, it gradually fades away.
Litecoin: Investors Will Look Elsewhere
In many respects, LTC is simply fighting an uphill struggle to generate attention. If you give an investor $1,000 to play with, I’m guessing they’ll go one of two directions, none of which contains Litecoin.
Option one is to look at Litecoin’s around 45 percent gains over the last three years before moving on to the stock market. In the stock market, you may earn 45 percent returns over three years without having to go on a crazy rollercoaster like LTC does.
Option two is that they will play the crypto lottery and invest in altcoins that are significantly less expensive than LTC. For every comparable unit of LTC, an investor might acquire more than 100 units of Cardano (CCC:ADA-USD). Cardano clearly has a lot more room to grow than Litecoin does.
Extend the same logic to any of the pennies and fractions of penny altcoins. That sort of high-risk move is also attracting a lot of attention. Everything points to one conclusion: Litecoin isn’t going to move much, if at all, for a long time.
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