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Cryptocurrencies have long been touted as the future of the financial world. These advanced digital assets and the blockchain platforms they’re built on use state-of-the-art technology and can offer us a number of benefits, but have yet to see true mainstream integration.
However, things move quickly in the world of crypto. We’re starting to see the assets increasingly adopted across a range of industries and sectors, and many experts believe we could be on the cusp of a crypto revolution. Let’s take a look at Litecoin adoption and discuss how the LTC price has been performing.
Litecoin – An Overview
Before we get into how Litecoin is being adopted and the effect this is having on the value of the asset, first let’s go over what Litecoin is.
Litecoin is a cryptocurrency and blockchain platform that was first launched in 2011, making it one of the oldest cryptocurrencies still on the market today. It was conceived as a Bitcoin alternative, and indeed the Litecoin blockchain exists as a fork of the original Bitcoin blockchain.
However, developers made key changes to Litecoin that differentiate it from Bitcoin, and were intended to improve upon what the developers saw as flaws within the Bitcoin architecture.
Like Bitcoin, Litecoin uses a consensus mechanism called proof of work (POW). Transactions made using the currency are represented as blocks, which are then added to a chain of previous transactions. However, these blocks must be verified by other users on the network before they are added.
Every new block generates a hash code. Users on the network attempt to create a hash code that is equal to or less than that of the block. When a matching code has been generated, the block is verified and added to the chain and the successful user is rewarded with freshly minted Litecoin.
Where Litecoin differs from Bitcoin is in the algorithm blocks use to generate hash codes. Bitcoin makes use of an SHA-256 algorithm, but Litecoin utilizes an algorithm called Scrypt. Hash codes generated using the Scrypt algorithm are less complicated, meaning they can be solved with less computational power. However, this doesn’t mean security is compromised; Scrypt is widely regarded as one of the safest and most secure hash code-generating algorithms.
Litecoin Adoption
When we hear of cryptocurrencies being adopted into mainstream industries and businesses, Bitcoin and Ethereum tend to be the coins that receive the most attention.
This is likely a major contributor towards the success of the aforementioned assets, as increasing mainstream integration will assure investors and see more money funneled into the coins.
Last November, digital peer-to-peer payments firm MoneyGram announced that it would integrate Litecoin into its crypto payments platform, allowing users to buy, sell, and trade Litecoin across the US. This was big news for Litecoin and helped buoy the asset during a tumultuous time for crypto, as the market nosedived due to the FTX exchange scandal.
A number of businesses use Litecoin and allow customers to pay for goods and services using the asset. Major brands like American Red Cross and streaming platform Twitch offer Litecoin options, as do retailers such as Jomashop, Newegg, and Pacsun.
Litecoin Reaches Transaction All-Time-High
Earlier this month, Litecoin posted across the company’s social media channels that the asset had reached a new all-time-high for transactions, recording an astonishing 167 million transactions made using the cryptocurrency.
This is a clear indication of Litecoin’s popularity and viability as an alternative payment system, and it’s a figure that major brands and businesses simply can’t ignore.
Litecoin has a number of advantages over rival coins like Bitcoin. We’ve already touched on its more efficient hash code algorithm, and the asset also has improved transaction speeds, making it easier and more appropriate for everyday use.
What this transaction all-time-high will do is confirm to investors that Litecoin has the support and backing of users to go along with its technological advantages.
In addition, Litecoin was recently confirmed as the market’s fourth most liquid asset. High liquidity is important and ensures efficient transactions, which will only further incentivize investors and businesses to adopt Litecoin.
How Has Litecoin Performed in the Market?
Cryptocurrencies are notoriously volatile and difficult to predict. The value of these digital assets can see wild shifts, peaks, and troughs, and they can be affected by a wide range of different economic and geopolitical factors.
Litecoin has grown by 58.98% over the past 12 months, and by 27.69% over the past six months. The reason behind this impressive growth is multi-faceted. One of the reasons is the increasing Litecoin adoption we’re seeing across a range of industries, and the other is due to the incoming Litecoin halving.
The Litecoin halving is an event that comes around every four years. It’s when the amount of Litecoin awarded to block verifiers halves, which works to reduce the number of coins in circulation and prevent inflation.
As we approach the halving, we’re seeing Litecoin bull run as users attempt to take advantage of the rewards offered for mining the asset before the allocation is reduced.
Conclusion
Considering the struggles we’ve seen across the crypto industry in recent times, Litecoin is performing remarkably well. Experts expect it to continue to rally as it sees increasing integration and adoption.
Disclaimer
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Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
