Litecoin (CCC:LTC – US DollarIt had been almost three months since it hit $294.56 on November 10. As of January 6, 2022, it is trading at $137.06, making it lose about $157 in the past two months. That’s a huge drop of about 53% over such a short period of time. It shows that LTC crypto can be as volatile as some of the smaller cryptocurrencies.
As it stands now, Litecoin’s market cap is still $9.25 billion. This puts it at number 24 among the best cryptocurrencies in the world. It’s just behind Algorand (CCC:something in US dollars), which I just wrote about as well.
Litecoin is a secure peer-to-peer cryptocurrency focused on payment transactions. Currently, Litecoin is accepted by 3,183 merchants around the world. This is up from 3111 in October 2021 when Cointelegraph wrote on this topic. At the time, the site said LTC was at an “all-time high”.
Recently, Litecoin has undergone an upgrade process and it appears that it is nearing the end of the process.
For example, a recent article in Average Describe the mechanisms of “testnet” issuance of a distributed ledger technology, i.e. blockchain. The net result is that Litecoin will be more secure as a payment and transaction closing mechanism.
Where this encryption leaves LTC
As I noted in a previous article, LTC crypto now has a virtual debit card. This will help to gain more acceptance with more merchants.
Litecoin indicated at the time that this would give it exposure to 50 million merchants around the world. This can allow multiple people to use Litecoin to buy, sell and trade assets and transactions. It can also help raise the value of LTC tokens.
However, in the long run, Litecoin suffers from a major flaw, which limits its ability to rise much more. This is its lack of smart contract functionality like cryptocurrency blockchains Ethereum (CCC:ETH-USD), dotted (CCC:DOT-USD) And Solana (CCC:LEFT-USD).
As a result, Litecoin has limited appeal to a certain type of cryptocurrency investor who wants to invest in DeFi (decentralized finance) and crypto related applications.
Until Litecoin can upgrade its status to have more use cases other than payments and related technology, its value will be limited. It can grow vertically, that is, with more payment ports, but not horizontally, with more applications and use cases.
However, this does not mean that users of Litecoin cannot access DeFi applications and opportunities in other cryptocurrencies, especially Ethereum. For example, a new network called pNetwork, which uses pTokens, allows Litecoin users to access Ethereum-based applications.
Moreover, in June, a new cryptocurrency was recalled WanChain (CCC:WAN-USD), with a market capitalization of $109.97 million, we came up with a solution to allow Litecoin to integrate with various DeFi applications.
What to do with LTC Crypto
However, it seems that the way forward for Litecoin is mainly to add more merchants and payment outlets such as debit cards and VISA cards for Litecoin.
However, this leaves him behind the massive movement towards all things DeFi and alternative decentralized finance. Other than the growth on the payment side, this could be a serious hindrance to the LTC cryptocurrency rising much more than its current market value.
So, at best, I believe that LTC cryptocurrency could increase by 20%-30% unless it proves that its usefulness extends to more than just payments. The reason is that Litecoin will never be a substitute for Bitcoin (CCC:BTC-USD) as a store of value.
But even as a decentralized payment mechanism, it may become popular. But this may be hindered by the market share of some other cryptocurrencies such as Solana, which also provides payment mechanisms and DeFi applications.
At the date of publication, Mark R. Hook holds any position (either directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author, and are subject to InvestorPlace.com’s posting guidelines.
Mark Hayek writes about personal finance on mrhake.medium.com And Newsbreak.com run the Total Return Value Guide that you can review here.