Is Litecoin Worth Buying in 2021?
Litecoin recently introduced the Mimblewimble upgrade to their network that improves the confidentiality of transactions for the platform users.
Litecoin on-chain metrics indicate that more than 94% of current LTC coin holders are currently “In the Money.”
Litecoin investments have reported an average ROI of over 104.8% in the last 90 days and over 619% in the last 12 months.
Most analyst reports are bullish about Litecoin’s future price performance, with most concluding the altcoin will break above $1000 by the end of 2021.
By the end of this Litecoin price prediction and investment guide, you will be able to make a more informed decision on whether you should invest in Litecoin LTC today. We will also help you gain a better understanding of how the cryptocurrency works, its progress, and explore its price projections from both an analyst and investor perspective.
Importantly, we will look at some of the factors that crypto experts believe will play a critical role in influencing LTC prices in 2021 and beyond.
First, though, we define what the Litecoin crypto project is, look at how it works and explore its accomplishments.
Litecoin is a cryptocurrency developed by renowned computer scientist, Bitcoin miner, and ex-google software engineer Charlie Lee. It is commonly referred to as the earliest Bitcoin fork and the digital silver to Bitcoins gold because it replicated Bitcoin blockchain’s open-sourced code with slight adjustments. These included a different hashing algorithm (Script in place of Bitcoin’s SHA-256), a faster block generation time of 2.5 minutes, 4x Bitcoin’s total supply at 84 million LTC coins, and incredibly lower transaction fees.
Litecoin was intended to solve the inherent challenges of slow transaction processing time and high transaction fees that affect Bitcoin to date. Like Bitcoin, Litecoin was initially designed to facilitate online payment services and borderless cash transfers.
Today, however, Litecoin is primarily used as a speculative digital investment product. Within the first three years of operation, Litecoin had gone on to become the third-largest cryptocurrency by market capitalization. However, several factors like Charlie lee’s liquidation of his entire LTC portfolio led to a sharp drop in LYTC prices, which saw it relegated to position ten on the list of largest cryptocurrencies with a market cap of 23 Billion.
What Has Litecoin Achieved So Far?
Litecoin is arguably one of the most popular cryptocurrencies. Close to 11 years after its launch, it has made significant gains that continue to influence its popularity and prices.
For instance, Litecoin was the first of the top 5 cryptocurrencies in May 2017 to integrate the Lightning network protocol and transfer 0.00000001 LTC from Zurich to San Francisco in less than 1 second.
It was also the first to embrace Segregated Witness technology at around the same time.
In March 2019, Litecoin became among the first digital currencies to have their asset securitized and offered as an investment vehicle to the public in the name of Grayscale Litecoin Trust (LTCN). The security is incorporated in Delaware and regulated by the SEC.
With increased popularity, Litecoin has been adopted by 2200+ merchants across the including such big-name companies like eGifter, Travala, Snel, and CryptoGames. In October 2020, PayPal partnered with New York-based Paxos in facilitating the purchase of LTC via PayPal accounts. Visa has also launched the LTC-Only Visa card, currently available to United States residents as a digital or physical card.
Why Should You Invest In Litecoin In 2021?
There is a reason why Litecoin has retained its near-permanent position as one of the largest and most popular cryptocurrencies for years. And there are even more reasons why you should consider investing in the altcoin today, including:
1. Litecoin is mooning
Litecoin, the 10th largest crypto, started gathering momentum in the last quarter of 2020. The move followed the announcement of the Mimblewible privacy upgrade, launch on the LTC-only Visa card, and support for LTC purchases on PayPal US. Between October 2020 and now (8th May), the altcoin has recorded a 753% price jump, moving from $46 to $346. The wild price run is then expected to continue for the better part of 2021.
2. Analysis points to long-term LTC price growth
Analysts and LTC investors promote LTC as a viable long-term investment because of its potential growth for growth. Despite its immense advantages over most other coins on the top ten list, including Bitcoin and Ethereum, Litecoin is still lowly priced. They believe the crypto is massively undervalued and therefore expect its value to rise tremendously in the next few years as its attention turns from crypto trade to use.
3. The crypto market is alive
Litecoin price is also positively correlated to BTC prices and the crypto market. Whenever the crypto market rallied, and Bitcoin shot for the moon, Litecoin has played catch-up, which boosted its prices and market cap immensely. Currently, the crypto market is running wild, with Bitcoin aiming for an all-time high above $65,000. And the two are expected to nudge LTC prices upwards over the next few days.
Read Also: Is Litecoin a Good Investment?
Litecoin’s Bullish Outlook From An On-chain Point Of Perspective
The strong on-chain metrics from Blockchain.com suggest further upside swings, possibly to record highs.
Additionally, much of the data collected via different technical analysis models place Litecoins within the buy zone, creating room for new investors to enter the traders and existing ones to increase their portfolio.
For instance, today’s In and Out Of The Money model suggest that as much as 92% of LTC investors are in the money, the rest are at money, and 0% is put of money.
The optimism about Litecoin’s future price action is also evidenced by the steady rise in the number of transactions worth $100,000 and above in the past month.
What Will Litecoin Be Worth In 2021?
Technical analysis at Long Forecast suggests that the ongoing Litecoin price rally will persist for the better part of 2021 and help it break above $1,000 in November before ending the year at $1,188.
Coin Price Forecast is also optimistic about Litecoin prices as their analysis indicates that LTC may reach $500 by June and trade within the $615 to $949 range throughout the year.
Analysts at PrimeXBT are equally optimistic about Litecoin’s future price performance and expect the cryptocurrency to possibly reach $1,250 before the end of 2021.
Digital Coin Price is nevertheless conservative and doesn’t believe in the prospect of Litecoin’s untamed future price growth. Their technical analysis suggests that LTC’s value may only grow up to $509.04.
Is Litecoin Worth Investing In 2021?
Several factors suggest that Litecoin price will continue rising throughout 2021, making the altcoin a must-have in your crypto portfolio.
First is the appealing comments about crypto investing by leading entrepreneurs and investors like Mark Cuban, Elon Musk, and Twitter’s Jack Dorsey. They have all invested in crypto and spoke highly of the digital economy, which has inspired public interest in such cryptocurrencies as Litecoin.
Secondly, analysts believe that with the entrant of giant payment processors like PayPal, Visa, and MasterCard into the crypto space, it will mass adoption of cryptocurrencies by merchants and service providers. Here, Litecoin is poised to achieve mass adoption not just because of its popularity but because of its fast processing speeds and negligible payment processing fees.
Crypto experts are also confident that as the crypto market run continues and Bitcoins tests new price levels, Litecoin will want to catch up.
Will Litecoin Grow In 2021?
Litecoin prices will likely rise further in 2021. Most price prediction sites have concluded that it will reach $500 and may even reach $1,000 before the end of the year.
Popular Litecoin advocates and investors like Dan Gambardello and Julio_LTC2021 have likened the current LTC price rally to the bull run witnessed in 2017. They are particularly confident that the altcoin will record a tremendous price run and possibly trade within the $1,000 and $4,000 range before the end of the year.
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- On-chain metrics point to a strong optimism about Litecoin future price performance and place the altcoin in the buy zone
- Investors and crypto analysts are both optimistic about the LTC prices and expect the coin to reach $1,000 by the end of 2021.
- The key factors expected to influence Litecoin prices throughout 2021 and beyond include its continued adoption, crypto market activity, and Bitcoin prices.