About Litecoin (LTC)
Litecoin was created in 2011 by Charlie Lee, a former Google engineer who wanted to build a faster, lighter-weight version of Bitcoin intended for everyday payments. It was one of the earliest altcoins and remains one of the longest-running blockchain networks in operation, with continuous uptime since launch.
The blockchain underpinning Litecoin has several technical differences to Bitcoin's: Litecoin produces blocks every 2.5 minutes instead of 10, uses the Scrypt hashing algorithm instead of SHA-256, and has a maximum supply of 84 million coins compared to Bitcoin's 21 million. These parameters were chosen with the goal of making Litecoin faster to reach consensus and therefore more practical for smaller, everyday transactions. In Australia, individuals can purchase Litecoin using AUD through PayID transfers on AUSTRAC-registered platforms like Swyftx.
How Litecoin compares to Bitcoin
The "silver to Bitcoin's gold" label has followed Litecoin since its early years. The comparison is apt in structural terms: both are Proof of Work blockchains with fixed supplies and halving events, but Litecoin trades a smaller network hashrate (theoretically making it easier to compromise) for speed and lower fees.
Litecoin has also served as a proving ground for Bitcoin upgrades. It activated Segregated Witness (SegWit) before Bitcoin did and was among the first major networks to support the Lightning Network for instant, off-chain payments. In 2022, it introduced MimbleWimble Extension Blocks (MWEB), adding optional privacy features for transactions, a capability Bitcoin does not natively offer.
Feature | Litecoin (LTC) | Bitcoin (BTC) |
Block time | ~2.5 minutes | ~10 minutes |
Maximum supply | 84 million | 21 million |
Hashing algorithm | Scrypt | SHA-256 |
Privacy features | Optional (MimbleWimble) | None natively |
Most recent halving | August 2023 (reward: 6.25 LTC) | April 2024 (reward: 3.125 BTC) |
What drives Litecoin's price?
Halving events
Like Bitcoin, Litecoin's block reward halves approximately every four years. The most recent halving in August 2023 reduced the mining reward to 6.25 LTC per block, cutting the rate at which new supply enters the market. Historically, halving cycles have attracted increased market attention, though past patterns are not reliable predictors of future price behaviour.
Payment adoption
Litecoin's low fees and fast confirmations have supported integrations with major payment processors and a growing network of cryptocurrency ATMs. Expansion of these real-world payment channels can impact demand for LTC as a medium of exchange.
Bitcoin correlation
LTC has historically shown strong price correlation with BTC. Broader Bitcoin market movements tend to influence Litecoin's valuation, given their shared Proof of Work lineage and the perception of LTC as a Bitcoin companion asset.
