Exchange rates of cryptocurrencies as displayed on ATM
Exchange rates of cryptocurrencies as displayed on ATM (Photo: Reuters)

We have heard about cryptocurrencies bouncing back after a horrendous slump in previous weeks with Ether, Ripple, and Bitcoin leading the raft of mainstream digital currencies.

The prediction for the health of the crypto market appears to be positive in the future days and many digital currencies are soaring in prices, particularly the most popular Bitcoin. But, the real winner is resting away from the spotlight and is rarely known in public. With a 330% increase in its unit price, Litecoin is now the hottest digital currency in the market.

As of today, Litecoin has gained a unit price of more than 300% since the start of 2019 according to Business Times.

Its market cap as of late is measured to be at $8.4 billion. It does not have the biggest market capitalization but it has the fastest growth in terms of price per unit based on the data gathered by Mosaic Research Limited.

One of the factors that contributed to this is Litecoin's halving strategy, which is cutting the supply of the digital currency by 50%. It means that the number of coins being given to miners is cut by half. The idea behind halving is that as soon as the Litecoin supply is reduced by 50%, it increases the price per unit of the currency.

Currently, miners are given 25 Litecoins for every block but because of halving, they will only receive 12.5 units of it. The next halving schedule will take place on August 6th.

Halving is not just limited to Litecoin. Bitcoin also undergoes halving every four years, and its next schedule is on May 2020. But what causes Litecoin to outperform Bitcoin in terms of price is a mixture of different factors, perhaps including the number of units of the currency in the network. It is typical, however, for digital currencies to thrive following a halving.

In recent years, more and more companies are accepting cryptocurrencies as payment for purchased goods. This has been the reason why there is growing confidence in the future of digital currencies. For example, AT & T has started to accept bills payments with bitcoins, and the list of major companies that may follow soon might be long.

Since the beginning of the year, the price of Bitcoin has risen by 120 percent. Litecoin, meanwhile, which traded at $30 per unit at the start of 2019 is now worth $130. But with the halving still weeks from now, it is still a decent time to buy Litecoin and perhaps earn massively consequently.