Will the Litecoin price double again by the end of 2021?
Developed and released by Lee In 2011, Litecoin has been one of the top ten cryptocurrencies by market capitalization for most of the past 10 years. However, Litecoin's market capitalization has recently slipped and is currently ranked 14th.
"Bit Gold, Lite Silver", Litecoin as a "substitute" for Bitcoin, has some significant differences from the latter, which makes it a more attractive option. It has a faster block generation time, which means that transactions through Litecoin can be faster than Bitcoin. In addition, Litecoin has a different hashing mechanism. Therefore, the mining process of Litecoin is much simpler than the complex Bitcoin mining process.
Over the course of Litecoin's price history, it basically follows the trend of price movement in the cryptocurrency market as a whole. Until 2017, the price of Litecoin was essentially dormant like other cryptocurrencies. However, due to the unprecedented bull market in the cryptocurrency market in 2017, the company rose by about 4,000% in the 7 months of that year.
In 2020, Litecoin's market capitalization more than tripled and reached a record high of $388 in May, but has since fallen sharply.
The question now is whether Litecoin can return to its highs by the end of the year. To reach our conclusions, we rely on expert reports, fundamental analysis, and technical analysis. Investors should also note that it is much more difficult to predict the price of Litecoin compared to other investment classes such as stocks and bonds.
Finder's group report
Finder conducted a survey of 42 fintech experts about Litecoin's future prospects. The survey found that most experts believe the price of Litecoin will reach $266 by the end of the year. That would be about 50% higher than the current level ($177).
These findings are similar to other panels' perceptions of cryptocurrencies such as DogeCoin and Ethereum. DOGE coin is expected to reach $1.21 by 2025 and ETH is expected to reach $4500 by December 2021.
However, while the price of Litecoin is expected to rise this year, panelists believe that this digital asset will continue to lose relevance to other cryptocurrencies. Most of them believe that Litecoin will never return to the ranks of the top 10 cryptocurrencies in terms of market capitalization.
Several of the participants argued that Lee's light bunkering had caused irreparable harm to Litecoin. A vote of no confidence on the founders of Litecoin could affect Litecoin's chances of becoming a strong contender in the cryptocurrency game.
Solid foundation
From a fundamental perspective, Litecoin's future looks positive. As mentioned earlier, Litecoin has a significant advantage over Bitcoin in terms of the blockchain technology that supports it. Litecoin charges a lower fee compared to Bitcoin, which makes Litecoin a great alternative to future flagship cryptocurrencies.
In addition, Litecoin is witnessing increasing market acceptance, which was recently added to Bitpay's payment services. This means that Bitpay users can now transact with Litecoin through the platform. As the number of partners increases and widespread adoption, the value of Litecoin should pick up with the end of 2021.
Litecoin is not just used for speculative purposes, it has the potential to become a true digital currency that is accepted by merchants around the world. If this happens, the future value of Litecoin will easily grow exponentially from its current level.
Finally, Litecoin is less volatile compared to other cryptocurrencies. This makes it an attractive investment option for more risk-averse investors.
Tricky technical side
Technical factors also need to be taken into account when judging Litecoin's recent price movements. The analysis found that Litecoin faces a major resistance level around $200. In addition, the resistance is further intensified, as $200 is also a major psychological obstacle.
If Litecoin succeeds in breaking through the $200 mark, it could usher in a period of high growth by the end of the year.
In addition, for Litecoin, social indicators do not seem to be very optimistic. Social volume and weighted sentiment are clearly lagging behind The level in May. Litecoin's active addresses (24 hours) also saw a significant drop.
Overall, this suggests that technically, the prospects for Litecoin don't seem enough for Litecoin to double by the end of the year.
summary
Over the past month, the price of Litecoin has risen again. If the broader cryptocurrency market remains bullish, there could be some significant gains for Litecoin by the end of the year. However, it is almost impossible to double the price of Litecoin during this time. Investors who follow Litecoin may find that it is a better long-term investment than for short-term trading purposes.