Investors Are Buying Litecoin at $2,750; That’s Over 635% Above LTC’s All Time High
LTC, the 7th largest cryptocurrency by market cap of $5.85 billion, is enjoying some gains along with the rest of the crypto market.
With bulls back with full force, even LTC managed to rake in 19.45% gains in the past week and 54% in the last 30 days.
At the time of writing, LTC/USD has been trading under $90, a level last seen in August 2019.
The initial boost to LTC came from PayPal when the online payments company enabled its millions of customers to buy, sell, and hold cryptocurrencies, including Litecoin (LTC), Bitcoin (BTC), Bitcoin Cash (BCH), and Ethereum (ETH).
Amidst this 15-month high, PayPal CEO Dan Schulman said that cryptos would become more like currency. By being used as a potential funding instrument, they will become less volatile and gain more utility in everyday purchases. He said,
“Early next year, we're going to allow cryptocurrencies to be a funding source for any transaction happening on all 28 million of our merchants.”
Recently, Litecoin even flipped Bitcoin Cash not just in terms of market cap but also as part of Grayscale holdings. While BCH’s latest gains have it move up to 5th position with a market cap of $6.28 billion, Grayscale Litecoin Trust still holds more funds at $70.7 million than Grayscale Bitcoin Cash Trust’s $54.8 million assets under management (AUM).
Interestingly, this demand has Grayscale Litecoin Trust trading at a premium to NAV of 3193%, as per Vetle Lunde, an analyst at Arcane Research. A few days back, this premium was over 4,000%, an increase which started just this month, most likely because of PayPal news.
This means those who are investing in Grayscale’s LTCN shares in the secondary market are “effectively buying LTC at an implied LTC price of $2750.”
This price was 637% higher than LTC’s all-time high of $373 in December 2019.