A decade ago, not most people knew what blockchain was, let alone where and how it was applied. In the space of 10 years, however much has changed, and crypto has evolved to become the most dominant blockchain use case.
Of these cryptocurrencies that have emerged, only a few have managed to keep up with market conditions. Litecoin, in particular, has stood out as one of the best Bitcoin alternatives (otherwise known as altcoins).
What is Litecoin?
Litecoin is an open-source decentralized cryptocurrency developed under MIT/X11. It is very similar to Bitcoin and has often been said to be the digital silver to Bitcoin’s digital gold. This is because the coin draws on the same protocols used in Bitcoin with minor tweaks.
It also operates on a peer-to-peer network where users can exchange funds without using an intermediary. Litecoin was launched on GitHub in October 2011 making it one of the earliest bitcoin spinoffs. Its founder Charlie Lee was a former Google e,ployee and also an engineer at Coinbase.
Charlie Lee was nicknamed “Satoshi Lite” because his innovation improved on the work of Satoshi. Six days after Litecoin was released, its network went live. Just like Bitcoin, Litecoin employs a proof-of-work consensus. Litecoin has its own non profit Litecoin foundation that aims to advance the crypto.
Its total supply is capped at 84 million coins – 4× the maximum total supply of Bitcoin. Litecoin also uses a different hashing algorithm compared to Bitcoin. The latter uses Secure Hash Algorithm 2 whereas LTC employs scrypt – a key derivation function based on passwords. Its graphical user interface is slightly updated in comparison to Bitcoin’s.
Litecoin (LTC) Price History
For a better understanding of Litecoin, we have reviewed the most important moments and price developments. Here is the rundown.
Historical course development
Litecoin had a quiet start after its launch. It took almost two years for the coin to set its print in the crypto market. Litecoin’s first significant price movement was in November 2013. In the four months leading to this price jump, the coin traded at an average of 2.2 EUR. In July and September that year, LTC managed to go above the 2.4 EUR mark briefly.
Litecoin started gaining momentum late in October and stayed the course for the next two months. On December 11, Litecoin posted a high of 22.5 EUR per coin – its highest price at the time.
It, however, didn’t stay above the 20 EUR mark for long. The coin’s price started dropping afterwards and kept declining until April. Its price then mark timed at 7 EUR for the next month two months before reaching 8 EUR in June.
Once again, it lost momentum and gradually declined to around 3 EUR in October. By the start of 2015, Litecoin had dropped to 1.6 EUR. After an unsuccessful attempt to rally at 2 EUR in March, it dropped further to 1.3 EUR in April.
A momentary gain in the next two months saw its price jump to 4.2 EUR in July before falling again to 2.8 EUR for most of September and October. By December, Litecoin had recovered to 3.3 EUR but saw another gradual dip in January 2016.
2016 was a very dull year for Litecoin as it traded between 2.5 EUR and 4 EUR throughout. On a few occasions, the price would move up to 4.2 EUR before falling again. There was neither a significant upswing nor slump until March 2017.
In the second quarter of 2017, LTC price started soaring steadily. Litecoin implemented SegWit in May, making it the first crypto to do so out of the largest five crypto coins by market cap. In the same month, the network also processed the first Lightning Network transaction –sending 0.00000001 LTC from Switzerland to the US in > 1 second.
The steady upward trend held in the third quarter and on September 4, Litecoin posted a new high of 57 EUR. The price remained above the 50 EUR mark until late October when it slightly dropped below the mark.
A second surge followed for the rest of the year and continued in early 2018. It became very popular at the end of 2017, consequently drawing in many investors during this period. On January 19, the coin posted another high of 159.25 EUR that was almost thrice the previous high. This new high was however eclipsed in March when the LTC price climbed to 169 EUR – the all-time high to this day.
The price then fell sharply in the following months trading at 29 EUR in December. By mid-January 2019, Litecoin’s price had plummeted to 26 EUR. Litecoin started recovering in the last week of January and maintained the upward momentum until June when it went over the 100 EUR mark.
The altcoin sank again and was trading at 42 EUR in December that year. Between January and March 2020, Litecoin’s price hang around 52 EUR to 54 EUR before suffering a slump in April. LTC price fell to 37 EUR in July and then climbed to 50 EUR late in August. The coin has since been on a gradual descent.
Litecoin’s market capitalization exceeds 2.8 billion EUR and, as of writing, is last in the top 10 largest cryptos by market cap. It also has a similar halving cycle (reduction of block rewards by half) as Bitcoin. The halving process happens once every four years with the next halving expected in 2023.
What will be the price of Litecoin in 2030?
Crypto Research Report Group forecasts that Litecoin will reach 1,020 EUR by 2025 and climb to around 1,900 EUR by 2030. That said, this is only a prediction and actual prices may turn out differently.
Factors affecting Litecoin value
The price of Litecoin is typically determined by the supply and demand of the altcoin at a given time. Knowing what factors drive these forces is, therefore, important for any investor. Some of these factors are:
- Litecoin halving
- General regulations around cryptocurrency
- The competing altcoins
- Adoption & growth rate
- Future analysis
Litecoin has the edge over other altcoins due to its close ties to Bitcoin. What’s more, both crypto coins have a definite maximum supply that adds to their scarcity element. Last year was arguably the best year performance-wise for Litecoin as it was ranked among the top 3 performing cryptos.
Is Litecoin a good investment?
Based on market trends and opinions of the industry’s best analysts, Litecoin is a good investment. This is backed by the fact that Litecoin has been performing well lately and shows potential to perform even better.
Although Litecoin has struggled to reach and surpass its all-time high price, experts believe it will get there eventually but may meet low prices before then. If you’re looking to invest in crypto, you should carry out your independent evaluation before taking the word of industry experts.
You can use the Litecoin price chart above to study Litecoin’s price development and its trends over the time interval you are interested in.
Relationship between Litecoin and other cryptocurrencies
Litecoin is often compared to Bitcoin (as you’d expect), Ethereum, and Ripple. This is because the three have been around for a long time now. Besides, they have maintained their positions in the market cap ranking.
However, they have different attributes, underlying technologies, and market value. Here is how the three compare:
Bitcoin is the oldest and most famous between the three. It is through Bitcoin that Litecoin was created. For this reason, it is viewed as the original cryptocurrency. Bitcoin was created by Satoshi Nakamoto whose identity is still a mystery. It was designed to act as a virtual currency that could be exchanged peer to peer anywhere without the need for a centralized/intermediary figure.
It also has the highest price for a single coin. Bitcoin’s SHA – 256 is mathematically complex compared to Litecoin’s scrypt. This explains why Bitcoin can only handle a maximum of 7 transactions, whereas Litecoin can manage up to 56 transactions per second.
Vitalik Buterin created Ethereum with the help of seven other co-founders. Unlike Bitcoin, it wasn’t designed to be a crypto coin. Buterin intended to build a platform that would support smart contract and serve as a world computer. This is why its native coin Ether doesn’t directly compete with coins like Litecoin.
Ether has no maximum supply, but its circulating supply exceeds 102 million. Litecoin’s supply is capped at 84 million, and it has over 58 million coins in circulation currently. The Ethereum network can currently handle 20 or so transactions per seconds, but there are plans in progress to increase this number.
Ripple was developed in 2012, about one year after Litecoin was launched. It was designed to overcome challenges involving payments between financial institutions such as banks. XRP’s main advantage is speed as its Ripple network can support up to 1,500 transactions per second. There are 100 billion XRP coins, but only 40% of these are currently in circulation.
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