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Crypto for Advisors: Litecoin Explained
Yahoo Financeยท 2025-10-16 15:00
Core Insights - Litecoin (LTC) is recognized as a resilient cryptocurrency with a strong track record, often referred to as "the silver to Bitcoin's gold" due to its faster transaction times and lower costs [5][12][13] Security and Network Health - Litecoin has enhanced security through a merged-mining arrangement with Dogecoin since 2014, which strengthens protection against 51% attacks [1] - The network has maintained uninterrupted uptime since its inception, a rarity in the blockchain sector, and has low transaction fees averaging under 10 cents [3] - The hash rate has increased in recent years, supported by improved Scrypt ASIC efficiency and combined mining rewards with Dogecoin, leading to higher overall network security [9] Technological Innovations - Litecoin was the first major network to activate Segregated Witness (SegWit) in 2017, optimizing block space and resolving transaction malleability [2] - It also played a key role in pioneering the Lightning Network (LN), enabling instant, low-cost payments [2] Supply Dynamics - Litecoin's issuance schedule mirrors Bitcoin's, with over 90% of the total 84 million LTC supply already mined and annual inflation under 2% [7] - The next halving is expected in July 2027, which will reduce inflation below 1%, making it comparable to traditional safe-haven assets [7] Market Valuation - Litecoin's NVT ratio, which measures market capitalization relative to on-chain activity, is below that of Bitcoin and Dogecoin, suggesting it may be more fairly valued relative to its utility [10] - The MVRV ratio remains below long-term bull market levels, indicating subdued speculative excess [10] External Sentiment - Google Trends data shows a steady decline in searches for "Litecoin" since its 2021 peak, reflecting reduced retail enthusiasm, which has historically aligned with undervalued entry points in previous market cycles [11] Investment Considerations - For financial advisors, Litecoin represents a durable asset that has survived multiple market downturns and consistently delivered on its value proposition of fast, low-cost, reliable transactions [12] - It can be viewed as a diversification tool within crypto allocations, offering exposure to a network distinct from Bitcoin while maintaining a proven security model [18]