Litecoin is one of the oldest cryptocurrencies in the market today, with 11 years of reliable proof of work blockchain. Recently, Litecoin is experiencing a dramatic winning streak against all the odds of the bear market. In 2022, the token gradually climbed from its $40.00 June yearly low to $80.00 on December 2022. A 100 percent increase that was only momentarily obfuscated by the collapse of FTX-Alameda empire correction only to bounce back to $81 today, January 10th, 2022. Seen as one of the most reliable payment networks, once ranked in the top 10 Coinmarketcap, Litecoin arduously races to reclaim its spot.
What are the Five Possible Reasons for This Steady Climb?
1. Elon Musk’s Twitter Acquisition
Elon Musk acquired Twitter in October 2022. He hinted at a possible implementation of dogecoin for payments on Twitter. Consequently, Litecoin’s hash rate and security have consistently risen because of Litecoin and Dogecoin merge mining. Essentially, merge mining enables Litecoin and Dogecoin miners to simultaneously mine and receive rewards for both networks. A win-win situation for miners.
2. Functionality of Litecoin
Reputable names in the industry are grasping the functionality of Litecoin. In a recent statement, the CEO of Microstrategy Michael Saylor criticizes many tokens while backing Litecoin. Michael Saylor stated that Litecoin is most likely a digital commodity like Bitcoin.
3. Mining Block Halving
In 2023 Litecoin is halving. While Bitcoin is halving in 2024, the Litecoin halving event will take place in less than eight months. The next Litecoin halving will reduce the mining reward from 12.5 to 6.25 Litecoin. The reduction in the inflation rate is bound to increase demand while reducing the quantity of emitted supply of the token.
4. Major Litecoin Update
In May 2022, Litecoin launched one of its major updates, by David Burket, named Mimble Wimble Extension Blocks (MWEB). With this new development, users have the choice to transact, with Litecoin, without revealing the transaction details. The MWEB feature is a second-layer extension that enables fungible transactions while, in parallel, improving scalability. According to Mwebexplorer, since MWEB activation, more than 50,000 Litecoins were transferred to MWEB addresses. In addition, several custodial wallets have signaled their support for the feature. Similar to the lightning network, initially implemented on the Litecoin network, sparked debates in social media that suggest MWEB could be implemented into Bitcoin as well.
5. Omni Lite Platform
Another Litecoin development that went unnoticed by the mainstream, but greatly applauded by the community is the Omni Lite platform – Smart contracts on the Litecoin blockchain. According to the Litecoin Foundation, “OmniLite is an open-source platform that facilitates the creation of decentralized tokens and smart contracts as well as digital assets, like tokens and NFTs. As a layered protocol on top of Litecoin’s blockchain, Omnilite has a distinct advantage over other blockchains due to its integrity, network security, scalability, and comparatively low fees.”
Conclusion
With that in mind, only time will tell if this winning spree for Litecoin will continue to go up. In 2021 and 2022, several stablecoins overshadowed Litecoin, Proof-of-stake Ethereum killers, as well as tokens with other value propositions. But the market continues to surprise us. And after all the turmoil during the Bear Market, people are reevaluating their choices and looking for well-built fundamentals, such as security, scalability, reliability, affordability, and decentralization. Those are qualities that the Litecoin network possesses.
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