A recent article has made a pretty interesting and largely optimistic prediction for Litecoin (LTC).
The article which was posted on the official Forbes website, projected that Litecoin will end the year as the third largest cryptocurrency ranked by the market capital, ultimately displacing Ripple’s XRP, which is the current third position.
Possible Reasons for the Prediction
This prediction was probably made because even in the current crypto winter where prices have stayed considerably plummeted up to 80 percent for a very long time, the price of Litecoin has continuously soared and almost completely doubled since 2019 started.
Currently, LTC is worth $57 which is a fantastic price considering the fact that as at December 2018, it was $23. Litecoin and Binance Coin (BNB) are two of the best crypto performers so far, this year.
Billy Bambrough, the author of the article, has clearly stated that that the reason for the improved price of LTC might be the fact that the developers along with the Litecoin Foundation, seem to be working tireless to not only attract very prominent partnerships but also to make the cryptocurrency as secure and personal as much as possible.
In the article, Bambrough quoted a story published by SFOX, a cryptocurrency brokerage. The article says:
“Litecoin volatility spiked when the Litecoin Foundation announced it’s exploring the integration of Mimblewimble, a protocol offering privacy and fungibility to blockchains.”
Bambrough is also of the opinion that news has considerable effect on the market:
“In March, keep an eye on how privacy news moments impact markets, such as recent revelations over Coinbase’s third-party service provider selling client data.”
The author mentions Litecoin’s proposed halving happening in a few months with the expectation that it might make Litecoin a bit more scarce. However, he isn’t very optimistic that the halving, as it normally happens, would raise prices for the cryptocurrency.
“These developments for litecoin could be just getting going, along with an upcoming halving, scheduled for August this year, which will tighten the supply of new litecoin. Previous cryptocurrency halvings have seen prices for their digital tokens rise, though there’s no guarantee this will happen again.”
Ripple’s XRP has seen quite a number of events, both positive and negative. It is true that XRP has been in the news quite a few times of recent with stories about major adoption by one or two financial institutions.
However, Bambrough believes that XRP might soon be affected by J.P. Morgan’s recent pronouncement about their plans to develop the JPM Coin. He believes that investor interest in Ripple would dwindle significantly.
Major cryptocurrency exchange – Binance – recently published a report by its research department, which concluded that the JPM Coin will not contend with XRP although most people believe it will. Regardless, Billy Bambrough believes that even if nothing is deliberately done to undermine XRP, the cryptocurrency sector is largely volatile and changes very often.
This means that the fact that there is a general warmth regarding Litecoin in the sector might just be what would eventually put the nail in XRP’s coffin at the end of the year. Nevertheless, Litecoin is still a very long way off as its current market capitalisation is $3.5 billion while XRP has $13 billion.
Not minding this wide gap, Bambrough still strongly pushes the LTC cause and does this by citing Mati Greenspan, the Senior Market Analyst for eToro, in a publication about Litecoin’s advantages and also its acceptance by traders:
“The number one real-world usage of litecoin it seems is as a settlement method for crypto-traders. For people who often send money from exchange to exchange to private wallets, it’s much cheaper and faster to do this with litecoin than it is with bitcoin.
This is why it indeed deserves the title ‘digital silver’ and with the upcoming halving event in early August, which is likely why it’s been outperforming the rest of the crypto markets lately.”