Litecoin (LTC) Rules the Crypto Market, Going to the Masses & the Moon After Passing EOS
Litecoin has been rising up like crazy in the green market as it surged about 21 percent and lead the crypto market gains. In fact, since mid-December yearly low at about $23, Litecoin is up more than 140 percent.
These impressive gains could be attributed to its dramatic fall as Josiah Hernandez, the chief investment officer of Satoshi Capital said:
“The harder an asset price falls, the steeper the rebound often is and that seems to be a factor in Litecoin's sharp gains this year.”
At the time of writing, Litecoin has been trading at $56.66 with 24-hours gains of 1.21 percent, as per the data provided by Coinmarketcap.
In the BTC market as well, it is up by 1.03 percent. While the top cryptos have turned slightly red with Binance Coin (BNB) down by over 6 percent, Litecoin is still in the green.
Litecoin price 3-months chart, Source: TradingView
The surge in Litecoin price has led it to overtake EOS on the 4th spot by market cap of $3.4 billion. It is also the 4th largest cryptocurrency in terms of daily trading volume. What’s even more interesting is that the combined market cap of Bitcoin Cash (BCH) and Bitcoin SV is lower than Litecoin’s market cap.
Multiple Factors Working on Giving Litecoin Flight
But Litecoin is not only up just because it saw a serious decline in December rather there are various factors that are lifting the fourth-largest cryptocurrency’s price since then as the CEO of BitBull Capital, Joe DiPasquale, said.
“While it can be said that Litecoin oversold last year, we believe the recent rise is a result of the factors.”
Growth in the Litecoin Lightning Network is one such factor which as per the statistics from 1ML indicates that the network capacity has increased 67 percent to $8,222 while the number of nodes is up 18 percent at 163 with 1,044 number of channels.
The newly launched fiat-to-crypto platform of eToro in 32 US states supports 13 cryptocurrencies including Litecoin.
Moreover, Litecoin is one of the only three assets on BlockFi’s latest crypto-backed loans offering while the other two are Bitcoin and Ether. Also, Venezuela’s approval of Bitcoin and Litecoin for remittances also further makes for its credibility and popularity.
“When compared with Bitcoin, Litecoin has typically been preferred as a transactional currency because of lower fees and most importantly, faster transaction confirmation times,” added DiPasquale.
“This results in increasing demand for Litecoin whenever people want to transfer crypto which can then be converted into other coins or fiat, and can be attributed as one of the reasons behind the recent surge.”
Litecoin is all focused on driving its adoption forward with partnerships and campaigns like #PaywithLitecoin.
Not to forget that the network is also working on adding fungibility and Confidential Transaction (CT) along with MimbleWimble in the coming days and of course, Litecoin reward halving that is just 5 months away.