6 important Litecoin statistics tell the story of Litecoin in today’s cryptocurrency market.
To ascertain the magnitude of Litecoin’s coins impact today, one must consider when it was first made available. Litecoin’s price today illustrates, that even through ups and downs, it is one of the best investments available. Litecoin, that is considered the silver of digital currencies, is a major contributor to the total value of the cryptocurrency market. This new market is not like traditional markets. Examining the meteoric rise of Litecoin at the end of 2017 illustrates this emphatically. What is even more interesting is the silver coin’s circulating supply. It is based on a ratio of four times that of the original blockchain.
Developed long ago in what seems like eons in crypto time, Litecoin finds its origins back in 2011. It was first made available on November 11, 2013. At this time, Bitcoin was still so immature that many did not think it would even survive for this long. At their peak, the crypto markets have equated to more than 1% of the world’s GDP. Litecoin is one of the premier crypto coins based on this market value.
It is hard to say if Litecoin supported the success of Bitcoin. What is undeniable is that Litecoin recognized some of the flaws (or weaknesses) in the original blockchain. It sought to provide what Bitcoin was not. By building a speedy and lightweight solution, Litecoin became an integral part of the cryptocurrency market. Many coins have come and gone since Litecoin was introduced. Yet, over this same time, Litecoin has thrived.
Being much faster than Bitcoin has its advantages. However, the Litecoin blockchain also costs less to operate. This enables investors to move their crypto assets much quicker and cheaper. Who knows how the new market would have responded without improving upon transactions. Recognized as the silver standard when compared to Bitcoin’s gold, Litecoin is a streamlined blockchain. It remains one of the premier cryptocurrencies.
Contribution to the Cryptocurrency Market Cap
At the end of 2017, Litecoin operated in a cryptocurrency market valued at nearly $700 billion. Its total value was $20 billion USD at its highest. This may not seem like a lot because Bitcoin remains such a dominant force. However, slowly but surely, the rest of the field is gaining ground. Litecoin is considered one of the most viable cryptocurrencies because it has consistently held a position among the top 5 coins based on market capitalization.
Incredible rise to over $230
Back in January 2016, Litecoin was trading at about $3. It remained steady around this price and under $5 until March of 2017. Then in a blink of the market, it jumped almost 200 points. Within a couple of very, very short months holders of Litecoin had seen a 10x increase in their money. Some investors who had purchased Litecoin in the Spring of 2017 even saw a 20x return. Starting in October of 2017 through mid-December Litecoin was suddenly and unexpectedly over the $230 valuation!
Its Price Today
Today the price of Litecoin is just above $120. This is really quite impressive. Many experts who are accustomed to traditional markets may point to how far it fell following the crypto craze at the end of 2017. Seemingly all cryptocurrencies rode the excitement of this wave that lasted until the beginning of 2018. The rapid fall has kept some investors away. At the very least, it has made new investment slow to enter the market. But when considering their brief and recent history, Litecoin and other major digital currencies show impressive figures. These are skyrocketing gains when compared to traditional markets.
The total Litecoin in existence is measured daily. In May 2018, it totaled 56,684,123. This is not an arbitrary number. By design, Litecoin is 4 times the number of Bitcoin. This means its max supply is 84 million LTC because Bitcoin is capped at 21 million BTC.
So why did the developers of Litecoin choose the 4x ratio? Well, consider that the initial design was as a solution for the slow and high costs involved in trading cryptocurrencies. Basic supply and demand explain the rationale. Higher supply overwhelms current demand. In turn, a lower ratio of demand tends toward lower prices. There is another tendency that Litecoin attempts to take advantage of. During market excitement (high volume trading), the number of transactions within a short period of time can overwhelm a blockchain. This is why Litecoin, is not as a complex blockchain as Bitcoin. It is streamlined to be faster.
No one doubts that the excitement over Bitcoin is the main reason. However, Litecoin was more attractive than many other cryptocurrencies. This was probably because it is fast and trades with low costs.
Total Value of Litecoin Today
Currently, there are nearly 57 million Litecoin. At a price of just over $120, the total market capitalization is nearly $7 billion ($6,979,498,960 USD) today.
While this is more than half of its peak of 20 billion at the end of 2017, it is still an incredible return on investment. Just look at its price in May of 2017 when it was under $30. Go back just one month more and it was under $10. The market cap at this time was about $0.5 billion.