The second most important coin in the blockchain market is Litecoin, not Ethereum. There exists a widespread misconception within the blockchain community: that the order of importance of a cryptocurrency is purely determined by market cap. While the market cap undeniably plays an important role in evaluating the relative size and influence of a coin, it is far from the only measure of significance.
The critical question, then, is: Why is Litecoin so important, despite not being among the top 10 coins by market cap?
At its core, blockchain is a financial system, and its most essential feature is reliability—reliability of the network itself and the decentralization that underpins it. And let us be clear: these two qualities—reliability and decentralization—are interdependent. One cannot exist without the other, and both must be present for the system to function at its fullest potential.
But reliability goes beyond just decentralization. It is also about the code, and here is where Litecoin steps in. Litecoin is essentially a copy of Bitcoin, with about 80% of its code being identical to Bitcoin’s. This code is not just a set of instructions; it is a foundation that has been thoroughly tested over time, providing stability and security.
Consider this: as Bitcoin grows in adoption, it becomes increasingly difficult to acquire, and the transaction fees required to send Bitcoin on-chain continue to rise. As of this moment, Bitcoin’s transaction fee is around $1 USD per transaction. Meanwhile, Litecoin offers a stark contrast: its fee is around $0.0012 USD—a fraction of Bitcoin's cost.
Let’s also acknowledge that Litecoin has been around since October 7, 2011, making it one of the oldest active blockchains in existence. This long-standing history gives Litecoin a level of credibility and reliability that many newer coins simply cannot match. It is, in essence, a proven alternative to Bitcoin.
Now, consider the issue of inflation in Ethereum. Ethereum, unlike Bitcoin and Litecoin, has no maximum supply. This means that Ethereum will continue to "print" new ETH indefinitely. It’s projected that around 1.2 million ETH will be issued this year alone. This inflationary characteristic raises important questions about the long-term value retention of Ethereum as a store of value.
In contrast, Litecoin, like Bitcoin, has a hard-capped maximum supply—a limit that ensures scarcity and predictability. While Bitcoin’s cap is 21 million, Litecoin’s cap is 84 million—a number significantly lower than that of Solana, which has 560 million. This scarcity creates a sense of trust and certainty in Litecoin, particularly in its role as an alternative to Bitcoin—not a replacement, but a complementary payment system while Bitcoin increasingly becomes viewed as a store of value.
Litecoin’s 13-year existence, its Bitcoin-like code, and its hard cap supply give it an enduring advantage that many fail to appreciate. It’s an asset that deserves more recognition, not just within the crypto community, but among all those interested in the future of decentralized finance. #Litecoin
