Litecoin Shows Growing Interest From Investors Before Halving Event, But Where Will LTC End Up?
Litecoin (LTC), one of the most popular digital currencies in the market, seems to be experiencing a very positive time. The digital asset has been one of the best performing cryptos since December 2018. There are several reasons to think that Litecoin will keep growing in the near future.
Litecoin Shows Its Strength In The Market
Litecoin has been one of the largest digital assets since it was created by Charlie Lee back in 2011. Since that moment, the virtual currency has attracted investors and other users that wanted to use a fast and cheap digital asset compared to Bitcoin (BTC).
As Bitcoin has been in a parabolic rally during the last few weeks, Litecoin has also shown its strength. The digital currency is going to be halving in just 70 days and block rewards will be cut in half. That means that Litecoin miners will be receiving 12.5 LTC per block rather than 25 LTC as now.
With a lower issuance of LTC, the price of the digital currency is expected to grow even further during the coming months.
⚡️Buying up $LTC
– Halving in 71 days (block rewards will be cut in half)
– Every halving has pushed price up significantly
– No resistance until $125+
– Overall bullish market
Seems like a no-brainer.
I'm in at: $112.25 pic.twitter.com/k2h8Id6tmU
— Crypto Godfather 教父 (@CryptoGodfatha) May 27, 2019
Another reason that is helping Litecoin reach higher values is related to the fact that there is almost no resistance up to $125. Indeed, Litecoin moved above $120 a few days ago, after falling as Bitcoin and other digital assets did.
According to Litecoin.com, there are different on chain metrics that show that there is a potential floor of support and intrinsic user interest. Litecoin.com informs that interest has started growing once again for Litecoin, even when the network interest does not seem to coincide with the crypto’s current market price.
At the same time, Litecoin.com explained that average transfers on the Litecoin blockchain increased from $7,000 to $20,000. This shows that the network is not being used by small investors that want to process daily transactions but by larger individuals that are dealing with a larger number of funds.
About it, they explained:
“Such sizeable transactions indicate the network is still primarily being used by affluent individuals to avoid traditional monetary transfer fees or as a speculative asset in which to invest. Not that this is necessarily bad, however, it runs contrary to the idea of these networks being used by [regular people] for smaller daily payments.”
The number of active addresses has also peaked at over 80,000. However, this does not mean that there are more network participants. Each of the new active addresses can be used by just one individual that wants to hold his digital assets in a separate way.
At the time of writing this article, Litecoin is being traded around $114 and it has a market capitalization of $7.06 billion.