Litecoin as digital silver alongside the thriving Bitcoin narrative of digital gold has performed just as well as silver during the gold rally to new highs.
Oddly enough, both the digital and physical counterparts lag behind their more valuable brethren. That could change soon, however, and Litecoin could ultimately benefit from Bitcoin’s success. Here’s why.
A rising tide lifts all boats, but Litecoin continues to drown
The cryptocurrency market looks very different than ever before. One of the main reasons for this is the fact that Litecoin is no longer in the top ten by market capitalization.
XRP has also fallen from third place due to problems with the US SEC, so that a completely new species dominates the industry alongside Ethereum and Bitcoin.
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But Litecoin could only be down and not out and, according to one analyst, could benefit from Bitcoin’s resounding success alone.
According to their tweet, LTC is better suited for smaller transactions and offers Lightning Network channels to keep fees to a minimum. Both are important reasons why the altcoin could benefit from BTC. But there is a lot more.
An Adam and Eve floor could send Litecoin higher | Source: LTCUSD on TradingView.com
Why LTC is poised for a comeback against Bitcoin
The above reasons are definitely factors related to Bitcoin and its success that could spill over to Litecoin as well. Litecoin is born from the Bitcoin core code. As with Bitcoin, there is a tight supply of just 84 million LTC – or four times that of BTC.
Among its many similarities, it relies on Scrypt instead of SHA256 for mining, which could be a differentiator that not only makes Litecoin perform well thanks to Bitcoin, it even outperforms the top cryptocurrency.
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It could still perform well as Scrypt is the same hashing algorithm used by Dogecoin that Elon Musk put behind as Bitcoin due to its energy efficiency.
When green cryptocurrencies become the new narrative, digital silver will have its time to shine. Like gold, silver has several industrial uses. However, silver is even more specifically linked to green energy initiatives, which makes the nickname for digital silver all the more apt for the altcoin.
The downward trend is continuing compared to Bitcoin. When will it end? | Source: LTCBTC on TradingView.com
The LTC / BTC chart shows a long-term underperformance against the very first cryptocurrency. Every Bitcoin is 200 times more valuable than every Litecoin, yet the range is only four times as large. The math is wrong and when the market finally realizes it could spell a rebound for the record books.
Will there be another spark in the altcoin called Digital Silver anytime soon?
Featured image from deposit photos, charts from TradingView.com