The price of Litecoin is following a similar trend to the entire cryptocurrency sector. There is a probability that the predictions of its growth will be linked to the novelties introduced by its blockchain.
On the cryptocurrency side, yesterday came the news that Litecoin will soon be trading on the non-custodial P2P marketplace LocalCryptos. The trading of Litecoin will start next June 15th. To celebrate this event, for three days, the fees will be zero, which means that Litecoin will be traded practically for free on this exchange.
Litecoin is also increasingly closer to becoming a privacy coin with the implementation of the MimbleWimble protocol. According to the latest updates, the test phase should take place in September. At that point, the crypto could compete directly with other more established privacy coins such as Dash, ZCash and Monero.
The price of Litecoin
Litecoin underwent the halving event in August of last year, which reduced the reward for its miners by half. Shortly before, in June, the price had reached $140, while at the same time Bitcoin was at $13,000.
After the halving, Litecoin slowly lost value. In 2020, in February, it was back to over $80, but with the collapse in mid-March, it literally sank to $30. It currently hovers at $46, far from the peaks of June 2019, and even further away from the historic record of $375, which was touched in the middle of the speculative bubble in December 2017. Compared to the beginning of 2020, it has recovered from the collapse of March, but its performance is far from that of Bitcoin or Ethereum, which in the meantime have doubled.
To date, some predictions for Litecoin’s price are actually negative: on TradingView, a collapse down to $33 is hypothesized by the end of June.
Litecoin, history and characteristics
Litecoin is one of the longest-lived cryptocurrencies after Bitcoin. It was founded in 2011 by Charlie Lee, a former employee of Coinbase, with the support of the Bitcoin community. After all, Litecoin is based on the Bitcoin protocol which has been modified. Its consensus algorithm is Proof of Work. It has a total supply of 84 million coins, four times more than Bitcoin. There are currently 64 million LTC in circulation.
Like Bitcoin, Litecoin shares the characteristic of the halving event every 4 years, which increases its scarcity.
It also shares with Bitcoin the implementation of SegWit and Lightning Network.
What it didn’t share is precisely the post halving scenario. While Bitcoin’s two halvings have seen the price of BTC rise sharply in 2017, the 2019 halving doesn’t seem to have done Litecoin any good as its value plummeted. After all, Charlie Lee himself had been prophetic: he said that the price of Litecoin could fall 90% after the halving. He came very close.