Litecoin

Litecoin is a proof-of-work blockchain launched in 2011 that processes peer-to-peer transactions with a target block time of 2.5 minutes—four times faster than Bitcoin. The network uses Scrypt hashing and maintains a fixed supply cap of 84 million tokens. LTC functions primarily as a medium of exchange and store of value rather than a smart contract platform; the protocol prioritizes settlement speed and fee efficiency over programmability.

Traders monitor Litecoin for its role as a barometer of risk sentiment in mature cryptocurrency markets. It maintains deep liquidity across spot and derivatives venues, with tight spreads on major exchanges. LTC typically exhibits high correlation with Bitcoin during risk-on and risk-off cycles but occasionally decorrelates during altcoin rotations, making it useful for tracking whether capital is rotating within established Layer 1 assets or exiting the sector entirely. Halving cycles every 840,000 blocks—occurring roughly every four years—create predictable supply compression events that historically influence intra-cycle trading dynamics.