The Merseysiders brushed aside Tottenham Hotspur last Sunday, winning 6-3 away from home and putting in a statement performance which would have worried their title rivals.
Arne Slot's side are first in the Premier League, four points clear of second-placed Chelsea, six ahead of third-placed Arsenal and 12 in front of seventh-placed Manchester City, while also having a game in hand on all three opponents.
Lynch expressed to Sports Mole his belief that the Merseysiders have the opportunity to push home their sizeable advantage when they welcome Leicester to Anfield, saying: "[Liverpool have] got to be confident coming into this one. Leicester have arguably become worse under Van Nistelrooy. Against West Ham [in] his first game, they gave up a lot of opportunities and were very fortunate to come out winners.
"You look at the 6-3 [against Spurs], but it only ends up being [a win by] three goals, so can [Liverpool] get a four or five-nil [on Thursday]? Can they keep that clean sheet that they want? Can they get all the goals and put on another attacking performance and a perfectly balanced performance?
"They will be licking the lips. They'll be excited about this one, and obviously, they've got to be careful in case Leicester pop up [with] any surprises, but this looks a nailed-on win for Liverpool."
Ruud van Nistelrooy's Foxes lost 3-0 at home against Wolverhampton Wanderers last Saturday in his fourth game in charge, and the loss was the second consecutive match in which they conceded at least three goals.
Will Slot rotate his team?
With Liverpool boasting such a commanding lead over their rivals, perhaps Slot could decide to rotate his starting XI on Thursday.
The Reds boss has avoided bringing in the likes of Wataru Endo and Jarell Quansah, instead preferring to stick with a core group of players.
However, while Lynch thinks that Boxing Day could be the perfect time for Slot to make the most of his squad, he feels that the Dutchman could be tempted to play his strongest lineup, telling Sports Mole: "The manager won't feel that he necessarily has to [rotate]. Liverpool's games over Christmas are spread out fairly nicely.
"[Liverpool are] so used to doing three games every three days that [Slot] probably won't feel the need to [rotate], and we saw earlier in the season when Liverpool did that first run of a game every three days, he didn't feel like he necessarily had to rotate.
"In a game like this, it's an opportunity - like we saw in the game against Tottenham - if you do get a handy lead, you can start to bring players off nice and early and give them a rest in that way, but I don't think we will see too much rotation. I think [he'll put his] strongest team out, try and get a decent lead, and then start to bring players off and make use of the five subs rule."
Endo featured in defence and in midfield against Southampton in their EFL Cup quarter-final clash on December 18, and with an away match against West Ham United to come on the weekend, ensuring that stars such as Ryan Gravenberch are well rested could be key to victory.
Can anyone stop Liverpool?
One accusation that some observers aimed at Slot was that the Reds had supposedly not faced anyone particularly challenging in the early parts of the season, with suggestions that the Merseysiders would inevitably experience a huge dip in form by Christmas.
However, the Dutchman's side have won 21 of the 25 games under his management - losing just once - and are currently unbeaten in their last 21 fixtures in all competitions.
Few could have predicted such a seamless transition from Jurgen Klopp to Slot, but Liverpool already look like clear favourites for the Premier League title.
In their past three league matches the Reds have conceded eight goals, the same as they had in their previous 14 top-flight fixtures, perhaps indicating the onset of some complacency.
The team's defensive issues in recent weeks can partially be attributed to a loss of concentration - Liverpool were leading 5-1 against Spurs before conceding two further goals - but players like Caoimhin Kelleher also made serious individual errors in that period.
Liverpool's problems in the backline are not systemic, and given Leicester City's struggles under Van Nistelrooy, it would be surprising if the Reds failed to win comfortably on Boxing Day.
Written by
Lewis Nolan