Cryptocurrency is becoming the talk of the day. We can even agree that its popularity is growing very fast as a means of exchange and survival for people. This is what led to the topic we will be looking at, Litecoin vs Ethereum.
The digital currency has evolved a lot since its inception, which has made a lot of people become agents in this digital world. Some come into the world to invest their money, which is why we can refer to them as traders.
Furthermore, some of these people are the founders of these digital currencies because they don’t just grow from nowhere.
In fact, there are thousands of cryptocurrencies out there today, and we can even agree that there are mostly new cryptocurrencies coming out every day. So sometimes we need to deal with the part of comparing these cryptocurrencies to know their differences and similarities.
Thus, in this article, we will be taking a look at some of the key differences between Litecoin and Ethereum.
Table of Contents
- Litecoin Vs. Ethereum
- Frequently Asked Questions About Litecoin Vs. Ethereum
Litecoin Vs. Ethereum
Litecoin and Ethereum are two of the oldest cryptocurrencies to be produced in the crypto world.
Apart from Bitcoin, which was the first cryptocurrency to be created, Litecoin and Ethereum are part of the second phase of the next crypto that was released.
Let’s take a look at some of the details of the two coins and understand their history, differences, similarities, and also the tokens that have been produced from them.
Later on, we will take a look at how their market prices and the future of both cryptocurrencies.
History of Ethereum
Ethereum is the second most popular cryptocurrency after Bitcoin. For most people, Ethereum is a coin, but if you look deep enough into this, you will get to know that Ethereum is a platform.
Although Ethereum has a number of founders, we will get to know the first person with the platform idea.
The platform was first coined in 2013 by a programmer called Vitalik Buterin when he introduced a white paper showing the idea behind the Ethereum platform.
After that, he was joined by others like Gavin Wood, Anthony Di Iorio, Charles Hoskinson, and Joseph Lubin, who assisted in co-founding Ethereum.
In April 2014, Dr. Gavin Wood presented the “yellow paper,” which was the technical definition of the Ethereum protocol. Also in that year, development began on Ethereum, and they also crowdfunded the program that same year.
Also in that same year, Ether, which was the token produced by the Ethereum platform, officially went on sale for 42 days, and then it could be bought with Bitcoin.
Afterwards, Ethereum keeps developing its platform, and the price of Ether keeps increasing.
Also Read: 10 CRYPTOCURRENCIES TO BUY NOW FOR LONG TERM INVESTMENT
In July 2015, Ethereum was officially launched, which has allowed so many decentralized applications to be launched on its platform.
Since the launch, many transactions have been carried out on the Ethereum platform.
The platform allows for decentralized applications to be launched on its platform.
This has given rise to so many decentralized finances, which have taken away the services of financial intermediaries such as banks, brokerages, exchanges, etc.
Furthermore, the platform can be used in the creation of unique NFTs, which are digital arts. Additionally, the platform provides users with an ERC 20 wallet which has been used on the Ethereum Blockchain, including providing an ICO (initial coin offering).
Ethereum provides smart contracts, a program that runs on the Ethereum blockchain. They are mostly used to create applications that can automate transactions between different users without any intermediary involvement or time loss.
Ethereum price history
The cryptocurrency is mostly called ETH and the token, which is Ether, is the second most popular cryptocurrency after Bitcoin and also the second most valuable coin in the market after Bitcoin.
When Ether was launched, it started at around $0.311 in 2015 and since then it has increased in price to $2,817.49 as of November 2021.
ETH has had its ups and downs just like other cryptos, and at the time of this article, in September 2022, Ethereum is at a price of 1,777 USD. Ethereum is a big player when it comes to the NFT market.
The current market price of the cryptocurrency is $207,954,410,588.
History of Litecoin
Litecoin is a cryptocurrency that came into existence in October 2011. It is based on the Bitcoin protocol but has a significantly smaller block size limit and no mining rewards.
The crypto coin has become very popular over the last few years, particularly in Asia and America, where it is commonly traded for other cryptocurrencies such as Bitcoin or Ethereum.
The peer-to-peer cryptocurrency was founded by a Google employee named Charlie Lee.
It allows you to send transactions directly between each other without the need for a third party such as a financial institution. Transactions can also be sent anonymously or encrypted for added security.
Also Read: 3 WAYS ON HOW TO GENERATE 1 LTC (LITECOIN) IN 8 WEEKS
All transactions are recorded on a public ledger known as the blockchain, which is visible to all users of the platform.
No individual has the power to alter the data as it is stored on a decentralized system.
This makes it very secure as there are no central servers that can be hacked into by malicious individuals.
The cryptocurrency has had its share of tough growth, which has made it one of the most popular cryptocurrencies on the market and is backed by several large companies such as Paypal and Visa.
Litecoin is essentially a clone of Bitcoin in that it is based on the same blockchain technology and also has many of the same features. This includes the use of a decentralized network and a proof of work mechanism to validate the transactions.
Litecoin price history.
It was one of the first cryptocurrencies to become famous after Bitcoin. It started at a price of about a few cents to three dollars between 2011 and 2013 per coin.
In 2013, Litecoin gained its first bull market and moved 10 times in its price to reach about 50 dollars, and it reached an all-time high price.
Moving forward to 2014, the cryptocurrency suffered a setback when the bear market of 2014 and the scandal of the Mt. Gox exchange brought the cryptocurrency back to around 1 dollar in value by January 2015.
This made investors more cautious about the risks associated with investing in cryptocurrencies.
Moreover, in 2015, Litcoin became more solid and moved to a price of 3 dollars in value, and in March 2017, the cryptocurrency entered its second bull market and moved from 3 dollars to 50 dollars. By July of the same year, Litecoin had moved to 80 dollars in value.
In November of 2017, the cryptocurrency had an amazing bear market, which led to a great market boom, and Litecoin rose from 80 dollars to 371 dollars in value.
But in 2018, the crypto world suffered a crash that also affected Litecoin, and it fell to 25 dollars in value as of December 2018.
After the crash, the cryptocurrency began gaining its bull power back and rose to 145 dollars in 2019 and also fell back to 50 dollars in the middle of that same year.
Furthermore, since then, Litecoin’s price is now at a price of 62.78 as of September 2022.
The current market cap of the cryptocurrency is $4,202,194,150.
Difference between Litecoin and Ethereum
Cryptocurrencies are a new and innovative way of transferring money that is quickly becoming popular around the world.
Bitcoin is the most well-known cryptocurrency, but there are many others, including Ethereum and Litecoin.
While all cryptocurrencies are similar in that they are digital, decentralized currencies that can be used to transfer funds over the internet, there are some key differences that set them apart from each other.
Let’s take a look at each of these cryptocurrencies and identify some of the key differences between them.
Litecoin is a peer-to-peer cryptocurrency that operates under a decentralized system similar to that of Bitcoin. Ethereum is a decentralized platform that has its own cryptocurrency called Ether.
Litecoin was created as an alternative to Bitcoin. Ethereum was not created as an alternative to Bitcoin, nor was its token Ether. While Litecoin was created in 2011, Ethereum was created in 2015.
One of the biggest advantages of Litecoin is that it is faster in transactions, making it a popular choice for people who want to make faster payments or conduct transactions on a more frequent basis. Ethereum is a little bit slower when it comes to transactions.
Ethereum is the second most popular and valuable cryptocurrency after Bitcoin. Litecoin is lower when it comes to popularity and also has a lower market value.
Also, Ethereum is more secure than Litecoin when it comes to security.
Litecoin uses a proof of work algorithm, which helps users get a reward for verifying transactions. Ethereum also uses a proof of work but it has begun changing to proof-of-stake which is a consensus mechanism for choosing participants to handle the verifying of transactions.
Transaction fees on the Litecoin network are lower, at as low as $0.05. The Ethereum network transaction fee is a bit higher at a fee of $0.69.
Ethereum has an unlimited supply of its coin named Ether, while Litecon only has 84 million produced and another 24 million left to be mined. ETH mining takes 15 seconds, while mining on Litecoin takes 2.5 minutes.
|Launched in 2015.||Launched in 2011.|
|A platform with its own cryptocurrency named Ether||A peer-to-peer cryptocurrency|
|High transaction fees ($0.06 upward)||Low transaction fees ($0.05).|
|It is very secure in transactions.||It is not very secure in transactions.|
|Most popular after Bitcoin||Not that popular.|
|High market value||Low market value|
|Proof of Work algorithm||Moving from Proof of Work to Proof of Stake|
|Slow in transactions||Faster in transactions.|
|It has a limited supply of coins.||It has an unlimited supply of coins.|
|Mining time 15 seconds||Mining time 2.5 minutes|
|The current market price of the cryptocurrency is $207,954,410,588.||The current market cap of the cryptocurrency is $4,202,194,150.|
Similarities between Litecoin and Ethereum
- They are both peer-to-peer and decentralized tokens.
- They both run on blockchain technology.
- They were both launched by their respective founders because they saw the loophole involved with Bitcoin.
- They both have faster transaction times than Bitcoin.
- Both are open source.
Ethereum performance in the market
Since the inception of Ethereum, there has been a bear and bull market which has affected the cryptocurrency one way or the other. We should also understand that some of these cryptocurrencies are affected by some other powerful cryptocurrencies, such as Bitcoin.
A lot of coins are affected by the pair-to-pair trade. They are also affected by inflation, mostly in currencies such as USD, EUR, etc. Below is the Ethereum (ETH) price per day from August 2015 to August 18, 2022.
Find more statistics at Statista
Litecoin’s performance in the market
Litecoin, just like every other cryptocurrency, has been through the bull and bear market.
It wouldn’t be a good idea to talk about this cryptocurrency without showing you its market performance, mostly for the year 2022.
Knowing the market performance of a cryptocurrency helps a lot in determining whether to invest in it or not.
As most are backed by Bitcoin, when there is a fall in value, it affects other alternate coins. So below is the Litecoin (LTC) price per day from April 2013 to August 18, 2022.
Find more statistics at Statista
Frequently Asked Questions About Litecoin Vs. Ethereum
Why is Litecoin not popular?
Litecoin has been around since 2011 and was also launched with the same technology as Bitcoin, which is the most popular cryptocurrency. Nevertheless, Litecoin has had a lot of struggles over the years, which has affected the market value of the cryptocurrency.
Is it better to buy Litecoin or Ethereum?
Well, while considering which of these cryptocurrencies you should invest your money into, check out the market cap of both and also their popularity. We can also see that the Ethereum token has a larger market cap than Litecoin, which is why a lot of people would rather go for ETH than Litecoin.
Is Litecoin dead?
Litecoin is not dead. The cryptocurrency has had a struggling year, which some other cryptos have also faced. Moreover, the market cap for Litecoin is falling below 5 billion dollars. We can say it is getting lower compared to some years back. The popularity of the coin is also part of the reason why people believe Litecoin is going extinct.
Beware that the cryptocurrency market is very volatile and it is impossible to make an accurate prediction for the long term. Litecoin and Ethereum have been around for a while and still face bear and bull market factors.
Before investing in any cryptocurrency, DYOR about the coin, and also don’t invest money you can’t afford to lose, as the crypto market is a risky market.
I Believe with this article you should have gotten a clear insight into Litecoin vs Ethereum.
This article on Litecoin vs Ethereum is written in order to shed more light on these two cryptocurrencies and not for the purpose of giving any financial advice.