According to eToro Research Litecoin (LTC) is trading at a massive discount to what it should be worth considering its supply, transaction speeds and fees, longevity, and close relation to Bitcoin.
Litecoin fans might want to check out the report in PDF form for a reminder as to why they got into Litecoin in the first place and why it still may be a good play. Below I’ll add some of my thoughts on the logic used in the report.
The gist of the argument, with some of my own logic interjected, is that since Litecoin is essentially a faster and cheaper Bitcoin fork, like Bitcoin Cash, but only has just under 4 times the max supply (84,000,000 max supply of LTC vs. 21,000,000 max supply of Bitcoin) and only 3.35 of the circulating supply, and since it is implementing all updated Bitcoin is (like the Lightening Network), it is undervalued given its current price of just over 1/10th of Bitcoin (LTC is trading at $76 and BTC $7.3k roughly as I write this).
Litecoin is down over 80% from its high at the moment, and the report just generally argues that for all those reasons and more LTC could be seen as oversold (its charts show a lot of over sold signals as well by the way).
Of course one wouldn’t expect any coin to trade on par with Bitcoin or above it (that would put that coin at the top of all coins by market cap), but one might expect Litecoin to trade more toward Bitcoin Cash’s market cap at least (considering LTC is faster, cheaper, and has been around longer than BCH).
Lastly, I would note that no matter how oversold a coin is, it can always go lower. Litecoin has strong support around $55. If this support doesn’t hold, one would be looking for the next support to hold. As long as we remain in a bear market for crypto there is no limit on how low coins can go (you have to be ready to lose it all in this market)… but all that aside, in terms of cryptos, there are many reasons to have an eye on Litecoin… as the report points out.
Below is the introduction to the paper.
Litecoin (LTC) is by far one of the most established networks in the crypto- space. It is already being used by many as a store of value and means of exchange and so can be considered as money. Furthermore, the groundbreaking partnerships that are being formed by the Litecoin Foundation position this crypto for long term success.
According to the metrics we have analysed below, the current price that LTC is trading at could be seen as a massive discount to what it should be worth.