Litecoin is one of the only altcoins that could survive an altcoin implosion relatively unscathed.
Litecoin (LTC), created two years after Bitcoin, was long considered a major competitor to the top cryptocurrency. In recent years, however, it has become much quieter around LTC. Many modern altcoins have taken over the market, eventually pushing Litecoin out of the top 10. In recent months, though, the Bitcoin alternative is making a comeback.
LTC, like almost all other cryptocurrencies, has experienced losses in recent months. The bear market caused its price to fall from $150 at the end of the 2021/2022 year, to just $70 at the end of the 2022/2023 cycle. Therefore, Litecoin’s losses were just over 50% lower than the losses of many other cryptocurrencies.
Losses were particularly severe in the first half of the year. In the second half of the year, a slight rise in Litecoin was seen for several months. This did not happen with almost all other currencies. As a consequence, LTC was pushed back into the top 15 cryptocurrencies by market capitalization.
Why Many Altcoins Could Go Under in the Next Years
In the years 2016 to 2018 the first big altcoin advertising started. At that time, Ethereum rose to number 2 in the market, behind Bitcoin. New projects such as Cardano, XRP or IOTA experienced enormous expectations. Some of these projects are still among the top cryptocurrencies today. Nevertheless, the altcoin market could regress massively in the next few years.
Quite a few analysts view the altcoin market as overvalued and bubble-like in certain respects. Bitcoin, in their view, should prevail in the long term, and regain greater dominance in the future. Both markets, the bitcoin and altcoin market, could move in a completely different direction. That would also mean that more and more altcoins will crash.
Can Litecoin Return to Number 2 in the Cryptocurrency Market?
If it becomes apparent in the next few years that Bitcoin can compete with FIAT currencies around the world, its value could explode. It is hard to say if altcoins will keep up with these increases in the long term. However, Litecoin could do this as an alternative among decentralized payment methods.
If the Altcoin market really does implode in several years, Litecoin in particular could benefit and return to second place behind Bitcoin. Litecoin’s recent rise on the cryptocurrency list shows that it may already be on that path.
The chance that Litecoin can survive the next few years and decades is much higher than with many other projects that are currently on the market. Therefore, one should consider whether Litecoin makes sense again, as part of one’s personal crypto investment portfolio.
By Audy Castaneda
