You may know Litecoin (LTC -2.98%) as the silver to Bitcoin's (BTC -3.92%) digital gold. The tweaked Bitcoin clone once commanded a price of more than $400 per token but has fallen back to approximately $95.
Are we looking at a fantastic opportunity to grab Litecoin tokens on the cheap before they start another dramatic climb? Let's find out.
Litecoin is giving Bitcoin a run for its digital money
Have you heard the buzz around Litecoin lately? If you haven't, here's what's going on.
Litecoin was the star of the crypto universe in November 2022, boasting a whopping 37% price increase. The jump caught the attention of crypto investors around the globe. Even though the coin has been pretty steady in early 2023, it has some juicy catalysts coming up that could trigger some exciting growth this year.
One of these catalysts is the highly anticipated halving event in August 2023, where the creation of new LTC tokens will be slashed by 50%. This move will make Litecoin even more scarce and reduce its future inflation rate. Historically speaking, halving events tend to boost a coin's value. Therefore, many crypto traders are hanging on the edge of their seats, eagerly anticipating a Litecoin rally around this event.
But that's not all. Litecoin's new partnership with Mastercard (MA -0.07%) has caused quite the stir in the crypto world. With this partnership, Mastercard will offer Litecoin-based cards to customers in the UK and EU, after experiencing success with a similar test program in the US market. This expansion could potentially make Litecoin a more mainstream payment mechanism, bridging the gap between crypto and fiat and making it even more valuable over the long term.
Remember, Bitcoin is focused on preserving value over the long haul while Litecoin's parameters were adjusted to make it more useful as a day-to-day payment platform. Bitcoin may be the more popular choice due to its original blockchain invention, higher liquidity, and wider popularity, but at the same time, Litecoin has its own unique advantages such as lower transaction costs and faster settlement of payments.
Why you should keep an eye on Litecoin in 2023
If we look back at 2019, Litecoin posted a one-year gain of 38% after its last halving event according to Coinbase data. It's difficult to predict the precise future of any investment, let alone a volatile cryptocurrency. Still, most prognosticators out there seem to agree that Litecoin will rise well above $100 per token by the end of 2023.
All in all, Litecoin is a cryptocurrency with tons of potential. Its upcoming halving event and partnership with Mastercard are key growth catalysts to watch out for in 2023. In fact, the Mastercard project may be a game changer since it makes Litecoin more accessible for everyday payments. Increased real-world usage is essential to building value in any cryptocurrency. This payment processing pact is exactly the sort of partnership that could transform Litecoin from a largely unknown altcoin to a household name.
Although Bitcoin remains the most popular and valuable cryptocurrency, Litecoin's unique attributes could make it an attractive investment opportunity for some. So pay close attention to the Mastercard agreement, get ready for the upcoming halving of Litecoin's mining rewards, and keep an eye peeled for more consumer-facing partnerships.
In my opinion, Litecoin looks like a serious investment for 2023. With a few potential catalysts on the horizon, this coin is poised for serious growth. Now, I'm not saying that the $100 price point is some magical number, but I do think that buying a few tokens at these modest prices could lead to some serious gains once the frozen crypto market starts to heat up again.
