Senior Market Analyst: Litecoin’s Current Price Is Massively Undervalued

Litecoin has made some fascinating headlines recently: through a collaboration with TokenPay, the Litecoin Foundation acquired shares of a conventional German bank; and HTC announced that its new intriguing crypto phone will support LTC. Now, a recent research regarding Litecoin bodes even better projections for the cryptocurrency…

A market research published on August 1st by eToro’s senior market analyst Mati Greenspan (PDF) determines that “the current price that LTC is trading at could be seen as a massive discount to what it should be worth,” which is essentially a strong Buy recommendation. Greenspan also concludes that Litecoin answers the criteria of money (currency) – a store of value, unit of account and medium of exchange – and that compared to Bitcoin, it “offers cheaper and faster transactions.”

Greenspan notes several notable developments of Litecoin that might push it much higher in the future:

  • A more scalable and smaller network than Bitcoin’s, which results in the most important developments in the crypto space, more than any other cryptocurrency.
  • The Lightning Network offers a second layer on top of blockchain, which permits extremely fast transactions.
  • The Segregated Witness (Segwit) update that improves security and scalability was implemented on Litecoin before any other major cryptocurrency.
  • More and more businesses, retailers and exchanges offer Litecoin-based payments both in person and online.
  • One of the most vibrant and loyal communities of the whole crypto sphere.
  • Litecoin is scrypt dominant, which means that even if all the miners from other cryptocurrencies joined to attack Litecoin, they would not be close to threaten the security of the network.
  • A shorter block time of 2.5 minutes compared to Bitcoin’s 10.

But perhaps the most compelling argument that Litecoin is currently undervalued is a comparative analysis with other alt-coins, concluding that “Litecoin has more widespread adoption in terms of total addresses, transactions, and trading volume than some of the other cryptocurrencies, yet the total network value lags in comparison.”

Lastly, Greenspan points out that investing in cryptocurrencies – including Litecoin – is still a risky business due to the crypto market’s high volatility, and he recommends assigning a maximum share of 20 percent out of the total investment portfolio to cryptocurrencies.