Litecoin, one of the oldest digital assets in the industry, has recently undergone a major resurgence. After a period of relative obscurity, “digital silver” to Bitcoin’s digital gold is suddenly in the spotlight.
Litecoin’s price is up 183% from its June lows, and is up 60% in just the past two weeks. This surge is likely due to several factors, including surviving through multiple bear markets, increasing adoption, and the upcoming halving event.
and Detailed analysis According to Reddit user u/TarkovRedditor, Litecoin’s resilience in market downturns makes it a safer option for many investors. Since 2017, only 41 assets have outperformed Bitcoin, and Litecoin is one of them. This resilience and high adoption rate make it an attractive investment. Furthermore, Litecoin is he one of the most popular cryptocurrencies adopted for payments, along with Bitcoin and Ethereum.
Another factor contributing to Litecoin’s resurgence is its perceived undervaluation. Despite a downward trend since 2014, Litecoin is gaining momentum in the recent bear market. This, coupled with increased penetration, makes it a potential investment in future purchasing power. Unlike fiat currencies that lose purchasing power, major stores that accept Litecoin as payment can increase in value over time.
Litecoin’s recent upgrade, the MimbleWimble Expansion Block (MWEB), has also contributed to its recent success. Effective May 2022, this upgrade will allow LTC senders to hide their addresses and the amount of cryptocurrency they transfer, similar to privacy coins such as Monero and Zcash. This upgrade, coupled with the planned halving event on August 2, 2023, likely contributed to Litecoin’s increased accumulation.
The clarity of regulation also adds to Litecoin’s appeal. Amid the recent regulatory drama in the cryptocurrency market, Litecoin, Bitcoin, and Bitcoin Cash have avoided securities declarations by the SEC. This is likely due to their proof-of-work consensus mechanism (in contrast, the proof-of-stake chain). more like securities than their PoW counterparts).
But crypto enthusiasts on Reddit aren’t the only ones who have noticed Litecoin’s resurgence. Litecoin’s recent listing on the EDX market and its removal from the SEC’s list of “unregistered securities” are potential factors contributing to this surge.
Recent news also points to a bright outlook for Litecoin. An upcoming halving event, entry into the top 10 market cap digital assets, and a partnership to support a new privacy protocol, MimbleWimble, have all contributed to the bullish sentiment surrounding Litecoin.