Litecoin (LTC) surged by 12.1% over the last 24 hours according to CoinGecko. This comes after multiple weeks in which digital currencies registered large losses, but Litecoin was able to keep above the price that it had two weeks ago. There are many things that could have pushed the price of this digital currency higher, among them, the upcoming halving in 2023.
Litecoin Takes the Lead In the Crypto Market
Litecoin continues to attract crypto investors as the digital currency surged by 21.9% in the last 7 days and 12.1% in the last 24 hours. LTC is now the 16th largest cryptocurrency in the world after surpassing Solana and Tron. These last two digital currencies have a market capitalization of $4.27 billion and $4.64 billion.
Meanwhile, Litecoin is trying to surpass $5 billion, as one of the few digital currencies that registered gains during these turbulent times. While Bitcoin fell from $21,000 to below $16,000, Litecoin surged from $50 to almost $70 during the same period.
But why is Litecoin moving higher when most of the crypto market registers losses? One of the reasons could be the narrative about the upcoming halving event in 2023. Litecoin will reduce its new issuance of LTC from 12.5 LTC per block to 6.25 LTC. This is the same process that Bitcoin follows, but with a delay of three years. In 2024, Bitcoin is also going to go through a new halving dropping the issuance of BTC from 6.25 BTC per block to 3.125 BTC.
Another thing that we should take into consideration when analysing Litecoin, is that this digital currency has been in the market for a very long time. Solana and Tron have been around for a very short time compared to Litecoin, which has been released to the market by Charlie Lee in 2011.
LTC is very similar to Bitcoin and its community is very close to BTC. Transactions are very fast, as they can take just a few minutes to be processed, and fees are extremely low compared to Bitcoin. Litecoin achieved this thanks to its 2.5 minutes blocks and without relying on a Proof-of-Stake (PoS) consensus algorithm.
Litecoin is also considered to be a “low-risk” cryptocurrency according to many investors. Why? Simply because it has been in the market for many years as an altcoin and has never been outside of the top 30 largest cryptocurrencies in the world. For almost a decade, Litecoin has also been exclusively among the top 10, until the bull market that started in late 2020, which pushed Litecoin outside of the highest ranking.
Despite the current bear trend, Litecoin seems to be resisting quite well the selling pressure. Hence, it could be an option for investors that want to diversify their portfolios and search for a better solution to other digital currencies.
At the moment, Bitcoin is being traded at around $16,200 and it has a market valuation of $309 billion. In the last 24 hours, Bitcoin surged by 1.8%.