It is Litecoin's turn to lead market momentum as the broader digital currency ecosystem slips into a more systemic bearish price correction. According to data from CoinMarketCap, Litecoin is trading at a price of $88.09, up 8.08% over the past 24 hours. The recent price growth is complementary to its week-to-date (WTD) price jump of 12.11%.
Litecoin is one of the legacy crypto pioneers created back in 2011 with codes based on the Bitcoin (BTC) protocol. Drawing on the similarities between both protocols as a proof-of-work (PoW) network, Litecoin also undergoes a halving event, with the next one due in August this year.
It is not surprising that Litecoin's growth momentum has decoupled from that of Bitcoin as investors are pricing in the next halving already. According to insights from top crypto market analyst Rekt Capital, citing one of his old analyses on prospective Litecoin price action, the recent upsurge and decoupling can be attributed to the upcoming halving event.
$LTC is showing strength meanwhile most of the market struggles on this market-wide dip— Rekt Capital (@rektcapital) March 22, 2023
Important not to forget about the #LTC Halving this coming August 2023#BTC #Crypto #LITECOIN https://t.co/otWMSUAYV9
Halving is an on-chain process through which PoW digital currency protocols split the rewards paid out to miners by half. It is deflationary in nature and is generally linked to an eventual price upsurge.
Litecoin primed for growth
Since its introduction, Litecoin has experienced many stages of the market cycle or era, including the recent crypto winter. By a very wide margin, digital currency remains a major benchmark of resilience for price growth irrespective of market outlook.
While stability is one of its watchwords, a tag that is deemed a luxury for other competing protocols like Ethereum Classic (ETC) and Solana (SOL), Litecoin has a fairly decent Return on Investment (ROI), according to CoinMarketCap data.
In all, Litecoin has a wide adoption curve as a payment token, and these factors make it primed for growth in the mid- to long term.