Can the LRC-20 protocol replicate the success of the BRC-20?

Bitcoin, Litecoin. If you missed out on Bitcoin's BRC20, don't miss out on Litecoin's LTC20.

Ltc20 Advantages

The various xRC20 protocols that have emerged like mushrooms after the rain are a concrete manifestation of market fomo, and users are urgently seeking the next opportunity for hundredfold or thousandfold gains. Ltc20 is currently the best solution.

On May 2nd, the Litecoin community launched a fork version of the BRC20 standard, named "LTC20".

Compared with BRC20: Litecoin produces a block every 2.5 minutes (compared to Bitcoin's 10 minutes), which allows for faster transaction confirmations. Additionally, the gas fees are extremely low (less than 0.1u per transaction, compared to Bitcoin's fees which can range from a few u to over a hundred u per transaction). In terms of block speed, flexibility, and transaction fees, Litecoin has significant advantages.

Compared with DRC20: The DRC20 protocol, launched by the Dogecoin community, currently has no official leadership and is in a state of fragmentation and disunity. In contrast, LTC20 is a market with official organization and platform support. Additionally, the gas fee for each transaction in Dogecoin is higher, approximately three times that of Litecoin.

Compared with orc20: Orc20 is a supplement to the brc20 ecosystem, with more flexible issuance of tokens and no namespace restrictions. Orc20 is more like an Ethereum erc20 representation on Bitcoin. To some extent, it deviates from the basic plate of inscription speculation. One problem it brings is, if we ERC20-ize Bitcoin, why don't we just use Ethereum's ERC20 directly?

BRC20's rise is touted as a movement to resist centralization and wealth whales, but its essence is that retail investors hope to turn the tables and let institutions, main players, and trading platforms take over their positions.

Only retail investors without the participation of main funds in the market are like a pile of loose sand.

LTC20's core advantage compared to other xRC protocols is that, with the narrative of Litecoin's halving in August, market funds and traffic will converge on Litecoin. With the driving effect of BRC20 in the past and the support of the halving narrative, LTC20 will become a reservoir of capital outflow. There is also a greater chance of attracting major players, institutions, and trading platforms to enter.

LTC has a market capitalization of approximately 6.8 billion US dollars, while the overall market capitalization of brc20 is approximately 500 million US dollars. By simply diverting a small amount of excess funds from the market to ltc20, many investment opportunities with returns of hundreds or thousands of times can be created.

Development Status of LTC20

The recent upward trend of LTC has led to a surge in speculative interest in this token. Currently, the nominal value of LTC's outstanding contracts (OI) has soared to $435 million, the highest level since the bull market phase in 2021.

After the price increase, the OI increase indicates that more funds have entered the market and traded the Litecoin halving trend.

Source: Coinglass

One of the key indicators of network growth is the number of new addresses. The network activity of LTC has exploded to unprecedented levels. Daily active addresses reached a historical high of 832,000 on May 10th, and daily transaction volume also peaked on the same day, with Litecoin surpassing Bitcoin with 331,000. This is an important milestone for Litecoin.

资料来源：Santiment Translation:

Source: Santiment

Unlike Bitcoin and Ethereum, where transaction fees skyrocket during network congestion, Litecoin users have not experienced a surge in transaction fees.

LTC20 Market Development Space

The entry threshold for LTC20 is extremely low, with a minimum of just a few US dollars to enter the Litecoin inscription market.

IV. Halving is the biggest narrative of Litecoin

As one of the biggest narratives in the cryptocurrency industry, the halving of Litecoin will attract the attention and capital of the entire market. The halving is expected to occur on August 3rd. If the interest group behind Litecoin wants to make a move, now is the best time.

The market always moves in the direction of least resistance. We can try to break out of fixed thinking patterns and shift the focus of Litecoin's halving event from LTC price itself to LTC 20.

From the perspective of cost-effectiveness, the related inscriptions of the "halving the plate" narrative are the best way to achieve a lot with a little effort.

LTC20 is a small pivot point that can ignite the market with just a few million to tens of millions of dollars in liquidity, even leveraging the $6.8 billion market value of Litecoin.

Take the inscription $HALF, which represents the concept of Litecoin halving, as an example. The total amount is 21 million, and the cost of minting one (1000 coins) is 1u. Assuming that the main force pushes the market value of $HALF to 100 million US dollars with tens of millions of US dollars, the increase of $HALF is about 5000 times, and a new wealth myth of ltc20 is born, which will eventually form a flywheel effect.

Halving inscription half wealth effect - fomo funds pour into ltc20 - increase in use cases of ltc, pushing up ltc prices - litecoin miners make money/exchanges gain traffic - Inscription Summer - industry positive externality (web2 traffic influx).

Perhaps the bull market has not yet formed a strong Schelling point in the market, enough to push Litecoin's market value to new heights, but this consensus Schelling point is enough to ignite Ltc20.

Five Speculative Games in Zero-sum and Non-zero-sum Games

Gambling is a zero-sum game, where one's loss is another's gain. However, speculation is essentially a non-zero-sum game, where most participants can be winners. This is the charm of speculation.

LTC20's major trend is positive gaming and incremental market.

If the market is viewed as a chess game, using "panoramic thinking" to analyze the core interests and goals of the various participants in the market.

Litecoin Official and Backing Institutions: The core interests are coin price and ecosystem. As an old mining coin, if there is no response to the halving every four years, Litecoin will be eliminated by the market and gradually disappear in the history of encryption. The emergence of LTC20 has increased the usage scenarios and frequency of Litecoin. The dual narrative of halving and LTC20 creates a network effect and marketing value that is far more useful than directly pushing up the price of Litecoin with tens of millions to billions of dollars in the Litecoin inscription market.

Litecoin miners: The popularity of BRC20 has made Bitcoin miners the biggest beneficiaries, and the leading role has played a demonstrative role, which will make Litecoin miners and mining machine merchants more intuitively feel the benefits of promoting LTC20 development.

Trading Platform: An exchange is essentially a traffic business, with core KPIs being users and traffic. For projects that can generate topic heat and attract users to trade, they are willing to promote them. Whoever can become the core trading market for LTC20 Token first has the opportunity to become the next big traffic pool.

Media: The core demand of the media is to chase hot topics and create discussions. Litecoin halving, as one of the biggest crypto narratives in the coming months, is a topic that no media can ignore. How to make the halving story attractive and profound, LTC20 is a great material. This promotion will also help boost the development of LTC20.

散户：Fomo mentality, missed the brc20 wealth explosion, and urgently seeking the next exit for funds.

For the entire encryption industry: The main user profile behind blind boxes, digital collectibles, card games, and trendy toys are young people from Generation Z. Low investment, scarcity, curiosity, and experiential consumption are the core reasons that attract them. As natives of the digital age, they are enthusiastic about exploring new things and believe that everything can be traded. LTC20 has similar attributes and soil, and has the opportunity to become the next Web3 traffic entrance.

LTC20 is currently a blank market in the encryption industry, offering a high-risk, high-reward opportunity for those betting on the bullish market. The cost of inscription ranges from tens to thousands of dollars, providing a chance to earn hundreds or even thousands of times the investment.

The following figure shows the potential upward space of ltc20 if the trend of inscriptions continues to develop. This is a blue ocean with a high probability of quickly growing from 0 to several billion to tens of billions of dollars in market value.

Predictive analysis of the development of things is certainly important, but if the risk exposure is not taken into account, it becomes a kind of self-brainwashing fantasy.

A spark can start a prairie fire, but only if there is a source of that spark. The current risk point for Ltc20 is that the infrastructure is not well-developed, such as the fact that the Ltc20 trading market has not been launched, and the 0-1 process cannot be carried out. Or, when the market is launched, it may coincide with a cold trend in the Brc20 or $ltc market, which are all uncontrollable factors.

The market is a fickle thing, and money flows wherever the wind blows. Until time provides a definitive answer, any affirmative or negative statements such as "Litecoin's halving rally is over" or "LTC20 will definitely succeed" are meaningless and have no reference value.

The true DYOR is to make forward-looking predictions about the development direction of things, while doing risk control, confirming the maximum risk tolerance, calculating the winning rate and odds, and finally deciding whether to enter the game.

This article is from a submission and does not represent the views of BlockBeats.