Litecoin’s Value Possibly Rise for Decreasing Supply and Coming Halving
About 70% of the total number of Litecoins to be ever produced has now been mined. Figures show that ~59 mln of the total 84 mln LTC to be mined is out there even as the network’s reward drop date in Aug. 2019 draws nearer. Due to its being functionally-compatible with Bitcoin and faster in transactions, Litecoin’s decreasing supply and coming halving are expected to impact its trading value against Bitcoin which it has started losing parity to long before the current drawn bear market.
Litecoin’s value may not rise soon like several other cryptocurrencies in the current market condition. This is despite the silver to Bitcoin’s gold just got listed by one of the world’s top crypto exchanges, Gemini. The launch makes Litecoin to be supported by almost every single major Bitcoin exchange and the third cryptocurrency to have such a privilege. Also, the upcoming release of Litecoin Core 0.17 is expected to lower network fees by a factor of 10 thus changing its average transaction fee from Ł0.001 per KB or ~$0.05 to Ł0.0001 per KB or ~ $0.005 half a cent and back at 2015 levels.
Bitcoin, Ethereum, and Litecoin are the BELlweather cryptos. They are the only coins that are traded on every major crypto exchanges and can be stored on every hardware wallet.
Easily buying and securely storing other coins is really a PITA. ?
— Charlie Lee [LTC⚡] (@SatoshiLite) October 25, 2018
Litecoin has been working on several additional features like Lighting Network, atomic swaps, and Confidential Transactions (pending). Yet, its usesulness has not been driven a little higher as well as its chances of being speculatively considered a great investment. Rather, there are still arguments that the network is cheaper because it is not being used and the proposed change to the Litecoin Core will only reflect on mining pools.
The calls for its community to seek more crypto exchanges that will enable Litecoin trading pairs e.g. Cryptopia to make the currency stronger across the board has also been countered. The argument could be made that Litecoin has been positioned to lean towards being seen and used for smaller transactions while Bitcoin caters for larger ones hence many traders and even exchanges would continue to see it as so. Also, with the recent value drop, most Litecoin bagholders who bought high may slow its rise as they try to take profit even at the slightest increase.
For Litecoin to return to its all-time-high (~$360) would be Herculean especially in the current market condition but the network’s foundational characteristics could still help in the long term. Litecoin has gained trust as a reliable network with about seven years of stability which gives a regulated derivatives exchange like ErisX to plan including Litecoin in its futures market. It is also opening up multiple avenues for adoption – working with payment processors to integrate Litecoin and buying equity in WEG bank.