One of the most commonly used terms in crypto is HODL. With almost every crypto, there are HODLERs who believe it will amount to something big at some point. But in reality, not every coin out there is worth HODLing. Some are dead projects that have no technical developments or competitive advantage in the market. One coin that is worth HODLing is Litecoin (LTC). While Litecoin (LTC) has lost a significant amount of its value in the 2018 bear run, it has the fundamentals to make a major rebound in a bull market. Here are 3 reasons why Litecoin (LTC) is worth HODLing.
- Its adoption rate is growing
Litecoin (LTC) is one of the most adopted cryptocurrencies in the market. Lots of merchants now accept Litecoin as a form of payment. This growing adoption is an indicator that merchants do appreciate Litecoin for the purpose it was created for, and that’s payments.
As more merchants adopt it, its intrinsic value will rise over time. Litecoin’s adoption proves that it has value beyond the speculation that is characteristic of the crypto markets. When this use-based demand combines with the speculative demand that will hit the crypto market at some point in the future, Litecoin (LTC) could rally hard going into 2019.
- Litecoin (LTC) is heavily tied to Bitcoin (BTC)
There are lots of backward linkages between Bitcoin (BTC) and Litecoin (LTC). Charlie Lee, the figurehead behind Litecoin (LTC) has been quite vocal in bringing out the interconnectedness of the two. This perception of interconnectedness means that if Bitcoin (BTC) rallies, Litecoin will rally too. Of course, a bitcoin rally would pull the rest of the market with it, but Litecoin (LTC) would rally harder. That’s because, in a bull market, investors would perceive it as a cheaper version of BTC and FOMO into it.
Now the big question would be, will bitcoin ever rally again? Looking at the chart, bitcoin (BTC) has held above $6000 all through the 2018 bear run. This means that it could have hit a floor at this price level. Institutional money also seems to be taking a keener interest in BTC than any other crypto. A combination of these factors could easily push bitcoin (BTC) to over $100k in the next Bull Run. In such a case, the value of Litecoin (the cheaper version of Bitcoin (BTC) would rally as well. Litecoin (LTC) at $1000 under such conditions is very much plausible.
- Litecoin halving is coming in 2019
Litecoin halving will happen next year, and if the previous Litecoin (LTC) halving is anything to go by, then Litecoin (LTC) could be headed for some serious gains in the next halving. Since Litecoin is now better known than in the previous halving, the FOMO around it could see the price rise by a significant margin going into 2020. If the halving happens in the middle of a market-wide bull run, it could push Litecoin (LTC) to over $1000 and beyond. It’s definitely worth HODLing with 3 – 5-year target. It’s a crypto that one can be sure will be around for years to come.