Popular cryptocurrency Litecoin (LTC) has reached a new milestone in its issuance and distribution. The crypto asset’s circulating supply has now surpassed 73 million, or 87% of its maximum supply of 84 million.
The latest achievement aligns with Litecoin’s proposed use case as a store of value, means of exchange, and investment vehicle in the rapidly evolving digital asset market. It also comes within 70 days to the Litecoin network, which is expected in early August.
Over 87% of LTC’s Max Supply Is Now in Circulation
Founded in 2011 by Charlie Lee, Litecoin is a decentralized peer-to-peer (P2P) digital currency that uses scrypt as a proof-of-work algorithm to enable fast and cheap transactions compared to Bitcoin (BTC).
The cryptocurrency has many similarities to BTC, including its halving mechanism, which reduces the block reward every four years, and its block time, which is 2.5 minutes instead of 10 minutes for BTC. However, Litecoin has also introduced some innovations, such as Segregated Witness (SegWit) and the Lightning Network, which enhance its scalability, privacy, and interoperability with other blockchains.
The current milestone of 73 million LTC in circulation means that over 87% of the total 84 million LTC that will ever exist have been mined. The remaining 11 million LTCs will be created over the next century as block rewards to miners who maintain the network’s security and integrity. This gradual emission schedule ensures that Litecoin’s inflation rate stays relatively low, predictable, and fair for all stakeholders. Following Litecoin’s upcoming halving, the number of coins issued per mined block would drop from 12.5 LTC to 6.25 LTC.
Significance of LTC’s Circulating Supply Milestone
The significance of the latest achievement goes beyond the numerical value. It shows that the cryptocurrency has established a solid network effect, community support, and market recognition as a legitimate and valuable digital asset.
The more LTC circulates, the more options users have to buy, sell, trade, or hold it, the more merchants and exchanges accept it as a payment method, and the more investors and institutions diversify their portfolios with it. Moreover, the scarcity of the cryptocurrency relative to its demand and utility can drive up its price and market capitalization, which currently stands at over $6 billion.
Meanwhile, the latest development comes as the Litecoin network has just processed its 160 millionth transaction, marking over 10 million transactions in the last six weeks.
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