Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      World Bank set to back South Africa’s big energy grid roll-out

      20 June 2025

      The algorithm will sing now: why musicians should be worried about AI

      20 June 2025

      Sita hits back at critics, promises faster, automated procurement

      20 June 2025

      The transatlantic race to create the first television

      20 June 2025

      Listed: All the MVNOs in South Africa – 2025 edition

      19 June 2025
    • World

      Watch | Starship rocket explodes in setback to Musk’s Mars mission

      19 June 2025

      Trump Mobile dials into politics, profit and patriarchy

      17 June 2025

      Samsung plots health data hub to link users and doctors in real time

      17 June 2025

      Beijing’s chip champions blacklisted by Taiwan

      16 June 2025

      China is behind in AI chips – but for how much longer?

      13 June 2025
    • In-depth

      Meta bets $72-billion on AI – and investors love it

      17 June 2025

      MultiChoice may unbundle SuperSport from DStv

      12 June 2025

      Grok promised bias-free chat. Then came the edits

      2 June 2025

      Digital fortress: We go inside JB5, Teraco’s giant new AI-ready data centre

      30 May 2025

      Sam Altman and Jony Ive’s big bet to out-Apple Apple

      22 May 2025
    • TCS

      TCS+ | AfriGIS’s Helen Hulett on how tech can help resolve South Africa’s water crisis

      18 June 2025

      TechCentral Nexus S0E2: South Africa’s digital battlefield

      16 June 2025

      TechCentral Nexus S0E1: Starlink, BEE and a new leader at Vodacom

      8 June 2025

      TCS+ | The future of mobile money, with MTN’s Kagiso Mothibi

      6 June 2025

      TCS+ | AI is more than hype: Workday execs unpack real human impact

      4 June 2025
    • Opinion

      South Africa pioneered drone laws a decade ago – now it must catch up

      17 June 2025

      AI and the future of ICT distribution

      16 June 2025

      Singapore soared – why can’t we? Lessons South Africa refuses to learn

      13 June 2025

      Beyond the box: why IT distribution depends on real partnerships

      2 June 2025

      South Africa’s next crisis? Being offline in an AI-driven world

      2 June 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Cryptocurrencies » Why litecoin is 2019’s top-performing cryptocurrency

    Why litecoin is 2019’s top-performing cryptocurrency

    By Agency Staff13 June 2019
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    This year’s top-performing cryptocurrency is up almost fourfold and you’ve likely never heard of it.

    Litecoin, which has gained more than 360% since the beginning of the year, is outpacing all its crypto peers, including ether and XRP, as well as the best-known and largest token bitcoin. It has a market cap of about US$8.4-billion, making it the seventh largest digital asset, according to data compiled by Mosaic Research.

    The rally can partly be attributed to litecoin’s upcoming halving (also known as halvening), whereby the number of coins awarded to so-called miners is slashed by 50%. The idea is that a cut in supply will not only drive up its price but will also prevent an erosion of value. Miners currently receive 25 new litecoins per block, but following the halving — which is expected to fall on 6 August — they will receive 12.5.

    The rally can partly be attributed to litecoin’s upcoming halving, whereby the number of coins awarded to so-called miners is slashed by 50%

    Halving typically happens roughly every four years and the run-up to it has, in the past, coincided with a rally in the underlying tokens. Four years ago, when the last litecoin halving occurred, the coin gained about 60% in the three months beforehand, according to data from CoinMarketCap.com. And the phenomenon isn’t isolated to litecoin, either — bitcoin is set to undergo its next halving in May 2020 and its biggest proponents are already seizing on the drop in supply as a catalyst for further gains.

    “Every time we’ve seen a halving event in bitcoin or litecoin, the price has risen astronomically,” said Mati Greenspan, senior market analyst at trading platform eToro, in a phone interview. “So, if that pattern continues, what we’ve seen so far is small potatoes in comparison,” he said. “This is quite normal for the crypto market.”

    Cryptocurrencies are undergoing a renaissance this year on the back of wider acceptance from mainstream institutions and increased attention from Wall Street. E*Trade is said to be readying cryptocurrency trades on its platform, as is Fidelity Investments. AT&T now lets customers pay their bills using digital tokens, the first US carrier to do so. And among the most anticipated developments is an upcoming announcement from Facebook, which is reportedly set to release more details on the basics of its own digital token.

    Huge rally

    These developments, among others, have pushed up the price of bitcoin by 120% since the beginning of the year. Ether, too, has gained close to 100%. Litecoin, which was trading below $30 at the end of last year is now worth $133.

    The elements behind the rally “are justifiable and real and factual,” said David Tawil, president of crypto hedge fund ProChain Capital. “It’s just a question by how much does it gain?” he said. “Is it reasonable to think that this halving, this catalyst, should allow the litecoin to reach its previous highs? I think so. I think it could.”

    But the recent resurgence in digital assets is masking an unwelcome reality: relatively few are using bitcoin, the world’s largest cryptocurrency, for anything other than speculation. Merchant transactions account for only about 1.3% of economic activity, according to data from Chainalysis, a number that’s stayed little changed even over the boom and bust cycles of the prior two years. Huge upswings or downswings in prices from day to day — which isn’t uncommon in the crypto world — make it difficult to utilize for things like bill paying or even to purchase a cup of coffee.

    That begs the question: if hardly anyone is using the world’s largest cryptocurrency, then who’s using litecoin?

    After peaking in January 2018, litecoin transactions are down dramatically, falling about 84% since the peak. They are up since the beginning of this year, however. And transaction fees in litecoin have been unpredictable, jumping 10-fold in late May before dropping again, according to BitInfoCharts.com. Such volatility can make developers reluctant to create apps for this blockchain, as a jump in fees can impact usage.

    Litecoin “only thrives if bitcoin is valuable”, said Aaron Brown, an investor who writes for Bloomberg Opinion. “It’s an established, convenient transaction currency well suited to a world in which bitcoin is the store of value. I don’t think it has much value in a world in which bitcoin prices are low.”

    I don’t think it’s important in the broader fundamental development of crypto. To us, that’s much more important

    Litecoin’s founder, Charlie Lee, cashed out of all of his holdings at the height of the digital asset bubble in 2017 when the token was trading for about US$375. It was a prescient decision — Litecoin lost almost 90% of its value the following year. Lee, who founded the coin in 2011, said at the time that he sold or donated all of his holdings and that the liquidation was aimed at preventing a “conflict of interest”.

    Critics accused Lee of recognising the frenzy around digital assets and cashing out ahead of a severe decline. Lee said at the time that he was turning his focus to increasing use by merchants. Representatives for litecoin didn’t comment.

    But now, with 53 days to go, litecoin fans will continue to count down until the halving. “It’s a good potential trading opportunity,” said Tawil. “I don’t think it’s important in the broader fundamental development of crypto. To us, that’s much more important.”  — Reported by Vildana Hajric and Olga Kharif, (c) 2019 Bloomberg LP



    Bitcoin litecoin top
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleEthiopia shuts off the Internet for days – to ‘stop exam cheats’
    Next Article Naspers earnings to rise by up to a third

    Related Posts

    Bitcoin smashes R2-million mark in record-breaking rally

    22 May 2025

    Trump tariffs are now slamming crypto

    7 April 2025

    How stablecoins could unlock trade in South Africa

    1 April 2025
    Company News

    Making IT happen: how Trade Link gears up to enable SA retail strategies

    20 June 2025

    Why parents choose CambriLearn for online education

    19 June 2025

    Disrupt first, ask questions later – the uncomfortable truth about incident response

    18 June 2025
    Opinion

    South Africa pioneered drone laws a decade ago – now it must catch up

    17 June 2025

    AI and the future of ICT distribution

    16 June 2025

    Singapore soared – why can’t we? Lessons South Africa refuses to learn

    13 June 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.