In a recent series of tweets, analyst Alex of crypto proprietary trading firm Scimitar Capital raised concerns about the future of Litecoin (LTC), arguing that the cryptocurrency is becoming obsolete. Alex pointed out that the upcoming halving event, which will reduce the block reward for mining Litecoin (LTC) by 50%, has failed to have any potential impact on the price of the cryptocurrency.
Alex questions Litecoin (LTC) existence
The analyst points to the fact that Litecoin, despite being the world’s second crypto coin created, has not been able to keep up with the growth of other cryptocurrencies, such as Bitcoin and Ethereum.
However, Alex raised questions about the relevance of Litecoin in today’s market and its necessity of existence moving forward. Utilizing a price chart that plotted previous halvings in relation to the percentage price increase, Alex identified significant patterns.
I looked into Litecoin and its upcoming Halvening in ~70 days
some weekend writing about:
the psychology of Halvenings
and whether Litecoin even needs to exist anymore— Alex (@thiccythot_) May 14, 2023
Notably, a consistent trend emerged, showing that approximately 100 days before the halving event, Litecoin’s price began to rise steadily, reaching its peak around 50 days prior.
Litecoin (LTC) halving in less than 80 days
In about 78 days, the anticipated halving event will take place, reducing the block reward for Litecoin from 12.5 Litecoin (LTC) to 6.25 Litecoin (LTC). Surprisingly, the price of Litecoin (LTC) has not reacted to this upcoming halving as it did in the past.
While Alex warns against drawing conclusions based on only two instances, he suggests that this lack of price movement is concerning, as halvings are typically seen as a “vote of confidence in the network.” Should a pump fail to materialize within the next 100 days, it could be over for Litecoin, Alex asserted.
On a positive note, Alex also highlights the increasing on-chain activity of Litecoin since May 3, following the introduction of LTC-20, a fork of the BRC-20 token standard on Bitcoin. He said,
“There have been more transactions in the past week than ever before on Litecoin.”
However, the analyst’s concerns seem not to be unfounded, as Litecoin (LTC) has been struggling to gain traction in recent years. The project has been surpassed by newer projects, such as Cardano (ADA), Polygon (MATIC), Solana (SOL), and Dogecoin (DOGE).
Despite the analyst’s concerns, there are still some reasons to be bullish on Litecoin. Although its future is uncertain at this point, the cryptocurrency project has a strong track record and a large community of supporters while also being one of the most secure cryptocurrencies on the market. However, as new and more innovative cryptocurrencies are developed, Litecoin will need to find ways to keep up.
