Litecoin is often referred to as digital gold for Bitcoin, and strangely enough, the two cryptocurrencies and two precious metals show the same behavior when one lags behind the other.
The lack of momentum in the digital and physical forms of silver has kept the price of both assets in check for the entire recent bull market in each class. With Litecoin not growing relative to other cryptocurrencies, the altcoin is only a billion dollars away from losing the top ten cryptocurrency by market cap – something it has pretty much held onto since its inception.
“Digital Silver” is the altcoin that just doesn’t shine
Litecoin is an offshoot of the original Bitcoin code created in 2011 by former Google and Coinbase engineer Charlie Lee.
Much like gold per ounce is both rarer and more valuable than silver, there are a total of four times as many LTCs as Bitcoin with 21 million BTC.
Related reading | Digital Silver: Why Litecoin Is Ready To Jump Against Bitcoin
In addition, there are, among other things, faster transactions. Aside from the few differences, there are mostly similarities between them – including a hard-coded halving that repeats about every four years.
Litecoin is way behind the rest of crypto | back Source: LTCUSD on TradingView.com
In contrast to Bitcoin, however, this halving was very little in terms of sustainable returns for investors in the altcoin. The cryptocurrency lags far behind Bitcoin, Ethereum, and most of the other cryptocurrencies in the market.
In contrast to Bitcoin or Ethereum and some other altcoins, Litecoin has not reached a new all-time high since the bull market began.
Even gold has set a new price record, while silver is still trading well below its price. It’s bizarre that the asset known as digital silver follows the path of physical silver so well compared to the rest of the crypto world.
Oh, #Litecoin. There is a risk of falling out of the top ten crypto assets. pic.twitter.com/LhteOXdG9L
– tonyspilotroBTC (@tonyspilotroBTC) March 25, 2021
Litecoin is in danger of losing top ten crypto status
However, Litecoin’s ongoing underperformance compared to the rest of the market could crowd cryptocurrency out of the top ten assets ranked by market capitalization, according to price aggregator CoinMarketCap.
The animated GIF above gives a look back at the past decade or so. The historical snapshots are tracked from the first date and then each year in March, which is the closest to the end of the month.
For every single snapshot, Litecoin is ranked from second to tenth and every rank in between. It never got number one, but it never lost the top ten either.
Related reading | Five Characters Litecoin is down, next in line for new ATH
But people like Chainlink, Stellar and Bitcoin Cash are on the right track, some within $ 1 billion of making history for discontinuing Litecoin. Each of the three assets was also represented in the top ten itself.
There is also a rising stablecoin – USD Coin – right at the end, and as more stablecoins are being created each month, the likelihood that it will take out the altcoin is also high.
Could a fall from the top ten and out of grace be a fatal blow to the coin, or is the mood so deep in the coin a sign that surrender is setting in and things may finally change?
Given how far behind Litecoin is in low supply, some bullish technicals and a lot more, the altcoin could shock the world if it finally does.
Featured image from deposit photos, charts from TradingView.com