Litecoin (LTC) is among the first so-called “altcoins” – alternatives to Bitcoin. As one of the first spinoffs from the Bitcoin blockchain, it was launched in October 2011. The coin was initially valued at a few cents, and it largely traded below $5 until the first cryptocurrency rally in 2017, when it reached $375. The price has since been volatile, dropping as low as $23 and soaring to an all-time high of $412.96 in 2021. Why is Litecoin down from the highs?

The crypto fell heavily in value last year and has tended to lag behind the broader crypto markets. Why is Litecoin falling? It has come under pressure as it has been overtaken in popularity by newer blockchains with more advanced features. But the coin gained in value following an upgrade late last year, and ahead of a change in its block processing rewards in August this year, known as a “halving,” analysts have provided a more optimistic Litecoin prognosis.

What’s going on with Litecoin? Is there potential for the price to gain further, or will it retreat? In this FXOpen article, we look at long-term Litecoin predictions and the major drivers that affect the market.

Litecoin Price History

Charlie Lee, a Google employee, created the coin in 2011. The network was developed to provide faster average block processing times – 2.5 minutes to Bitcoin’s 10 – and a larger cap on circulating supply – 84 million to Bitcoin’s 21 million. The aim was to process smaller transactions faster than Bitcoin at a lower cost while becoming a store of value – in effect, digital silver to Bitcoin’s role as digital gold.

The cryptocurrency steadily gained popularity and saw its first major price spike in late 2013, soaring from $2.34 to a high of $53.15 in November 2013. However, like many other cryptocurrencies, it came under pressure from a market crash in 2014, and its value dropped back to $2 by the end of that year. The coin’s value then stabilised at around $3-5 until April 2017.

LTC experienced another major surge in 2017. It reached a new intraday high of $375, making it one of the largest cryptocurrencies by market capitalisation. However, the rally was short-lived, and by early 2018, LTC had dropped back down to around $100. Since then, the coin has been relatively volatile in line with the broader crypto markets, with several extreme peaks and troughs.

In 2020, LTC's value rose again, driven by increased crypto adoption and investments, and ended the year at $160. The rally accelerated in 2021, and LTC soared to its all-time high of $412.96 in May of that year.

However, the markets subsequently collapsed on concerns about regulation in countries like China and the US, with the Chinese government restricting crypto mining. The coin plummeted to $118.64 by late May and fell further still to $105.57 in June 2021.

Bullish sentiment surrounding the emergence of metaverse applications in the second half of 2021 lifted prices across cryptocurrencies, including LTC. However, it lagged behind other coins, peaking at $294.56 while the likes of Bitcoin and Ethereum reached new all-time highs.

The rally was again short-lived, and the crypto markets collapsed heading into 2022. LTC traded down from $146.54 at the start of 2022 to $40.68 in mid-June and then stabilised between $50-60 until October.

LTC then became a top-performing crypto in November 2022, gaining 44% following a series of upgrades to the blockchain, including the Mimblewimble Extension Blocks (MWEB) upgrade that allows users to protect their privacy with confidential transactions and hide their account balances.

The market has also been supported by optimism over its upcoming halving, which is expected in August 2023. The halving will result in a 50% reduction in the number of new LTC tokens created when each new block is added to the blockchain.

But why is Litecoin not rising further? The price was up by 23% year to date in mid-April, having traded up to $100. But it has since retreated, trading around $88 into the start of May.

Will Litecoin drop again? Let’s consider factors that could affect Litecoin’s potential in 2023.

Litecoin Forecast: What Will Affect the Cryptocurrency in 2023?

How much will Litecoin be worth this year and beyond? According to analysts, there are several factors that will influence the coin’s value.

Block Reward Halving

As Litecoin was created from Bitcoin’s source code, it retains Bitcoin’s halving process, which, every four years, reduces the block reward miners receive to process transactions and add them to the blockchain. Halvings occur every 840,000 blocks on the network compared with every 210,000 blocks on Bitcoin. The block reward will fall from 12.5 LTC to 6.25, while Bitcoin’s reward will drop from 6.25 BTC to 3.125 BTC in its next halving in 2024.

Analysis shows that the value of LTC tends to rally in the six months before halving events, pointing to the potential for it to rise further in the coming months.

Adoption

Market demand is an important driver for crypto. LTC was previously one of the world’s top five cryptocurrencies by market capitalisation, but as other coins and tokens have increased in popularity, it has slipped to the 12th position at around $6.4 bn.

If LTC continues to be surpassed by new cryptocurrencies, interest could wane, and the price could fall on low demand, but continued upgrades to the blockchain could make it more attractive to users and investors. If buying interest increases, the value could move higher.

Regulatory Policy

Concerns about the impact of government regulations have limited the upside for prices during the crypto winter. US regulators, including the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), are increasingly targeting cryptocurrencies, cracking down on coins like Ripple’s XRP and the Binance exchange, alleging that they have violated US securities laws by not registering with regulators.

In April 2023, the European Parliament approved the world’s first package of rules to regulate the cryptocurrency industry. However, its effect on the industry is still unclear.

Market Sentiment

The value of cryptocurrencies, including LTC, is strongly influenced by market sentiment. When traders and investors are bullish, they increase their buying activity, lifting demand. Conversely, when they are bearish, they tend to sell their holdings or put off buying, weighing on demand.

Sentiment surrounding LTC has been cautious as observers consider whether it is still worth investing in or if they should focus on newer cryptocurrencies, which is one of the reasons why Litecoin is not going up.

What Is Litecoin Expected to Reach? Analyst Forecasts

Like most cryptocurrency markets, LTC is likely to remain volatile in the future, according to analysts.

How high can Litecoin get in the coming years? Will it continue to rise in 2023 and return to previous highs, or will it drop back? Will Litecoin ever be worth as much as Bitcoin?

Litecoin Price Projections for 2023

The Litecoin long-term forecast from algorithm-based prediction sites varies widely, with Wallet Investor offering a bearish outlook while Digital Coin Price is bullish. Other sites expect the coin to trade in the low $100 range.

• The most pessimistic outlook for the end of the first half of 2023 is from Wallet Investor – $59.945.
• The most optimistic projection for the end of the first half of 2023 is from Digital Coin Price – $191.60.
• The lowest forecast for the end of 2023 is from Wallet Investor – $77.453.
• The highest optimistic estimate for the end of 2023 is from Digital Coin Price – $186.31.

Litecoin Price Projections for 2024

Is Litecoin going to rise in 2024? Algorithm-based forecasts are mixed, as some predict that the crypto will shed value while others indicate that it could move higher.

• The lowest forecast out to June 2024 is from Wallet Investor – $42.792.
• The most bullish projection out to June 2024 is from Digital Coin Price – $228.78.
• The most bearish outlook out to December 2024 is from Wallet Investor – $52.122.
• The highest forecast out to December 2024 is from Digital Coin Price – $199.82.

Litecoin Price Projections for 2025

What is the prevailing Litecoin price prediction for 2025? Several algorithmic forecasters project that LTC could rise in value in 2025. However, Wallet Investor remains bearish in its Litecoin future price prediction, projecting that the value could drop below $20.

• The lowest forecast out to June 2025 is from Wallet Investor – $17.386.
• The highest estimate out to June 2025 is from Digital Coin Price – $315.56.
• The lowest estimate out to December 2025 is from Wallet Investor – $30.848.
• The highest projection out to December 2025 is from Digital Coin Price – $281.62.

Litecoin Price Projections for 2026

Forecasts based on algorithmic calculations continue to diverge for 2026, with the most bullish LTC long-term price prediction estimating that the coin will approach its all-time highs, while the most bearish sees it dropping into the single digits.

• The most bearish forecast looking ahead to the end of the first half of 2026 is from Wallet Investor – $6.148.
• The most bullish estimate looking ahead to the end of the first half of 2026 is from Digital Coin Price – $368.8.
• The most bearish projection looking ahead to the end of 2026 is from Wallet Investor – $8.851.
• The most bullish indication looking ahead to the end of 2026 is from Digital Coin Price – $383.59.

Litecoin Price Projections for 2027

By 2027, some forecasters have a Litecoin value prediction above $200, while Wallet Investor still expects LTC to trade below $10.

• The lowest estimate for the end of the first half of 2027 is from Wallet Investor – $6.375.
• The highest estimate for the end of the first half of 2027 is from Price Prediction – $393.21.
• The lowest projection for the end of 2027 is from Wallet Investor – $5.874.
• The highest estimate for the end of 2027 is from Price Prediction – $476.76.

Litecoin Price Projections for 2028

There are fewer algorithmic forecasts for 2028, as the high volatility of the crypto markets makes it difficult for analysts to offer long-term estimates. The Litecoin 5-year prediction indicates that the coin could trade far higher than its current level, although the outright values continue to vary widely.

• The most pessimistic estimate looking ahead to the end of the first half of 2028 is from Coin Price Forecast – $244.96.
• The most optimistic estimate looking out to the end of the first half of 2028 is from Price Prediction – $602.01.
• The most pessimistic projection looking ahead to the end of 2028 is from Coin Price Forecast – $263.33.
• The most optimistic projection looking ahead to the end of 2028 is from Price Prediction – $718.69.

Litecoin Price Projections for 2029

Will Litecoin continue to rise in 2029? The forecasters that have issued predictions suggest that the value of the coin could move higher.

• The lowest estimate for June 2029 is from Coin Price Forecast – $281.56.
• The highest estimate for June 2029 is from Price Prediction – $883.32.
• The lowest projection out to December 2029 is from Coin Price Forecast – $299.66.
• The most optimistic outlook out to December 2029 is from Price Prediction – $1,044.29.

Litecoin Price Prediction for 2030

The sites that have issued a Litecoin 2030 price prediction indicate that the crypto could gain further value by the end of the decade, although Coin Price Forecast projects that it could fall from its June level to trade lower by December.

• The lowest estimate out to June 2030 is from Coin Price Forecast – $317.64.
• The highest prediction out to June 2030 is from Price Prediction – $1,270.91.
• The lowest projection out to December 2030 is from Coin Price Forecast – $299.77.
• The most optimistic outlook out to December 2030 is from Price Prediction – $1,562.17.

Litecoin Price Projections for 2031

The LTC crypto price prediction for the start of the next decade remains bullish – two of the three forecasters that have issued projections indicate that it could trade well above $1,000.

• The most pessimistic expectation for June 2031 is from Coin Price Forecast – $315.64.
• The most optimistic estimate for June 2031 is from Price Prediction – $1,882.88.
• The most pessimistic prediction for December 2031 is from Coin Price Forecast – $299.86.
• The most optimistic estimate for December 2031 is from Price Prediction – $2,204.61.

Litecoin Price Projections for 2032

LTC forecasts for 2032 diverge between showing the cryptocurrency stabilising at around $300 or soaring above $3,000.

• The lowest forecast looking ahead to June 2031 is from Coin Price Forecast – $314.06.
• The highest estimate looking ahead to June 2031 is from Price Prediction – $2,789.27.
• The lowest forecast looking ahead to December 2031 is from Coin Price Forecast – $328.19.
• The highest projection looking ahead to December 2031 is from Price Prediction – $3,265.87.

Will Litecoin Rise in the Future?

Most predictions from algorithmic-based forecasters are optimistic, projecting that the cryptocurrency could trade at new all-time highs in the coming years. However, the forecasts range between hundreds and thousands of dollars, reflecting the high volatility in the crypto markets.

You can open an FXOpen account to make your own projections and trade the Litecoin CFDs on the TickTrader platform.

At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules, respectively. They are not available for trading by Retail clients.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.