Litecoin, one of the oldest digital assets in the industry, has seen a huge recovery recently. After a period of relative obscurity, “digital silver” versus bitcoin digital gold has suddenly risen into the spotlight.
The price of Litecoin is up 183% since its lows in June last year, with a 60% increase in the past two weeks alone. This increase has been attributed to several factors, including its survival through multiple bear markets, increased adoption, and an upcoming halving event.
In a detailed analysis by Reddit user u/TarkovRedditor, Litecoin’s resilience to market downturns has made it a safer bet for many investors. Since 2017, only 41 assets have outperformed Bitcoin, and Litecoin is one of them. This flexibility and high adoption rate have made it an attractive investment. Moreover, Litecoin is one of the most popular cryptocurrencies approved for payment, along with Bitcoin and Ethereum.
Another factor contributing to Litecoin’s resurgence is the perceived undervaluation. Despite being in a downtrend since 2014, Litecoin gained momentum during the recent bear market. This, combined with its growing adoption, makes it a potential investment for future purchasing power. Major stores that accept Litecoin as payment can increase in value over time, unlike fiat currencies that lose purchasing power.
A recent Litecoin upgrade, the MimbleWimble Extension Block (MWEB), has also played a role in its recent success. Effective in May 2022, the upgrade enables LTC senders to hide their addresses and the amount of crypto they are transferring, similar to privacy currencies such as Monero and Zcash. This upgrade, along with the upcoming halving event on August 2, 2023, likely contributed to the Litecoin buildup.
Regulatory clarity has also boosted Litecoin’s appeal. Amid recent regulatory drama in the crypto markets, Litecoin, Bitcoin and Bitcoin Cash have avoided being declared securities by the SEC, which may be due to their Proof-of-Work consensus mechanisms (Proof of Stake chains, by contrast, are closer to securities than their peers). in proof of work).
However, it’s not just cryptocurrency enthusiasts on Reddit who have noticed Litecoin’s comeback. Litecoin’s recent listing on EDX Markets and its exemption from the SEC’s list of unregistered securities are potential factors contributing to this rally.
The recent news also indicates a positive outlook for Litecoin. The upcoming halving event, its entry into the top 10 digital assets by market capitalization, and partnerships to support the new privacy protocol, MimbleWimble, are all contributing to the bullishness around Litecoin.