When we talk about cryptocurrencies falling through the year, and market declines, many of us focus on Bitcoin as a point of reference. The justifications for this are obvious, Bitcoin is the most dominant cryptocurrency and thus has a big impact on the markets. It is however important that we explore similar currencies in order to gauge how the rest of the year will pan out for these currencies. Litecoin in particular has been impacted quite badly this year, seeing an overall decrease from the 2018 all time high of $303.95, down to the present value of Litecoin at $82.23. This equates to a price drop of just under 73%, quite alarming if you’re a late investor.
What’s more, the current value of Litecoin sits at almost 78% less than the overall all time high of Litecoin of $371.04, as recorded just before the new year.
The failure of Lite Pay did of course have quite a big impact on the value and reputation of Litecoin. Yes, eventually Litecoin did recovery from this but even since then, the community have felt a little wary about Litecoin as a project. With this in mind, we are confident that a new, more rounded version of Lite Pay will hit the markets soon enough. This could have a very positive impact on the markets if this is the case.
Overall though, why has Litecoin dropped over 70% this year?
Honestly, this is just down to the organic trend within the markets. Values are decreased and thus, so is interest in cryptocurrencies. As interest in crypto dies down, investment does too and values are left to diminish. Of course, the Lite Pay saga did have an impact and we have to look at instances of cyber crime and hacks that are sweeping the industry at the moment too. The demise of Litecoin then is not down to the currency or the community behind it, instead, the demise of Litecoin seems to be the result of a series of unfortunate events.
Will Litecoin recover?
At the very least, we hope so. By the end of 2018, Litecoin has every chance of recovering that 70% decline. You never know, by December Litecoin could be up 80% from now. In order for this to happen though, I think we need to see two things. Firstly, the markets need to recover (obviously) and secondly, the reinvention of a better Lite Pay. This would do wonders for the value of Litecoin and would no doubt inspire some hope back into the Litecoin community. Moreover, #PayWithLitecoin, a social media phenomena is also promising to spearhead Litecoin towards cryptocurrency adoption. If this happens, maybe we could expect to see Litecoin up 80% after all.
Remember, this is not investment advice. By all means, use this to inform your investment decisions, but you also need to ensure you complete extensive wider research. Cryptocurrencies are very volatile and therefore you are investing at your own risk.