Litecoin is currently one of the most successful and sought-after coins of 2024. The coin has recorded a growth rate of 37.41% this year during which the coin peaked as high as $136.23. However, that’s not the only factor that makes the Litecoin stand out in the market. It is a fact that the various investors in the market are claiming that the coin will cross the $200 mark in the coming year.
One of the decisive factors that can contribute to this growth is its supply in the market. In this article, we will look carefully at the coin and its total supply in the market, and check whether there is a limit on it or not. If there is indeed a limit on its supply, we will also be looking into the potential reasons behind it.
Litecoin & Its Speciality
Litecoin is a cryptocurrency founded in 2012 by the fork in the original cryptocurrency. It was first put forward into the market aiming to provide decentralization in mining. This was to prevent large-scale miners from taking control of the mining industry. The features employed by Litecoin are quite similar to that of BTC, but the associated algorithms are completely different.
Currently, Litecoin is aiming to become a key player in the day-to-day transaction. The coin is currently ranked #25 in the crypto market based on its market capitalization, which stands at $7.65 billion. Litecoin uses the script hashing algorithm, a mathematical function that converts data into a fixed-length hash value. Furthermore, Litecoin can process and verify over 50 transactions per second. This is high compared to the currency that it was derived from.
Is The Litecoin Supply Limited?
The answer to the above question is yes. The famous currency is indeed limited and that too, to a total supply of 84 million. Based on the current Litecoin mining data, the entirety of the supply will be finished mining by the year 2144. The 84 million mark is nearly four times the BTC mark, which is 21 million.
Litecoin’s founder’s main objective was to make a currency quite different from BTC. That’s why he developed a currency that has a higher transaction rate than the original cryptocurrency. However, Litecoin has four times the total supply of Bitcoin, so there is little to no chance that individual Litecoin blocks will surpass BTC in market value.
Reasons For Limited Supply
A limited supply of a coin is usually put on it by the developer of that coin. It is mainly put forward to boost a cryptocurrency’s demand and market value. Once a coin reaches this specified limit, miners will no longer be able to produce these coins. This is done during the development phase by specifying a limit to its supply through the protocols employed or the code.
In most cases, long-term investors will look for these types of coins in the market. This is mainly because they believe these coins’ value will increase exponentially due to their limited supply and increasing demand. There are also cases where supply limits are employed to prevent price fluctuations. This is mainly done in cases of stablecoins.
Litecoin Current Market Supply & Implications
Litecoin has recently surpassed the 75 million mark in supply, making the current supply approximately 75.36 million. This value marks the total number of coins that people can buy or sell in the crypto market. Keep in mind that this number doesn’t include the coins that are locked away or preserved for some future increases.
With the supply now close to 80 million markets, it could significantly affect the coin’s price movements and market sentiment. It can also alter the liquidity and trading volume associated with the coin. There is also a chance that the limited supply could boost the adoption of the coin as long-term investors are likely to choose these types of coins for their investment purposes.
Final Remarks
The limited supply put on a token can boost a coin’s demand and thereby the potential market value. The fact that people have mined over 75 million Litecoin is enough to show the interest of various investors in the famous cryptocurrency. With Litecoin getting closer to its 84 million mark, we could expect a significant surge in its market value in the coming years, especially as the next halving is scheduled for 2027. As of now, we can only wait and see just how much the coin will rise in the future.
