The case of Litecoin: five catalysts for growth
What is LTC coin
LTC cryptocurrency (litecoin) is an altcoin based on the key pillars of Bitcoin. Nevertheless, Litecoin differs from Bitcoin as it uses the adaptive cryptographic function of generating a key for primary hashing during coin mining, and also allows forming the block at a faster rate.
The history of litecoin cryptocurrency price began in October 2011, when the coin was issued as an open source client on GitHub Internet hosting.
Litecoin started gaining momentum last Marchand and has been rising in price ever since. Its recent price fluctuations are staying within $170 to $200. For a cryptocurrency known to be volatile, Litecoin’s recent surge is considered a promising sign that the altcoin has the potential to be a good investment.
The rapid growth of Litecoin cryptocurrency started at the end of the first quarter of last year when the price of a coin was less than $ 4, a by mid-December it exceeded $ 350. Despite the fact of subsequent correction, the cost of LTC didn’t lower $100. At the moment, this altcoin is trading in the range of $170-200.
We should note that LTC broke growth records in the past. So, at the end of November and at the beginning of December 2013 the cost of LTC increased from $4 to over $40. However, the further deep correction began, and the rate of Litecoin rolled back below $4 (just where it was until March 2017).
Picture 1. The cost of Litecoin since floatation to date
A lot of factors have determined Litecoin’s recent bullish activity. From an increase in demand to major industry events, these factors are closely watched by analysts as they are potential variables that will impact the cryptocurrency’s future growth. So looking back at its brief history and analysis of this cryptocurrency, there are five key things the industry learnt from Litecoin’s recent surge.
Fast transaction speed
Finance journalist Jesse Damiani in his review pointed out that the altcoin (like Litecoin cryptocurrency) is much faster and cheaper to transact, qualities that have long attracted potential investors. And with over 84 million Litecoins in existence, it’s a much easier market to tap into than many other cryptocurrencies.
The transaction speed in the Litecoin system is four times faster than that of Bitcoin.
Litecoin’s relationship to Bitcoin’s success
Although its qualities are more attractive than Bitcoin’s, Litecoin’s success is still heavily dependent on the former’s economic FXCM explained that the altcoin was created to be the silver to Bitcoin’s gold, which means the proportional direction of both cryptocurrencies are inevitable, at least while Litecoin increases its market strength. An example of this was when Bitcoin’s price rose when it was added to the Chicago Board Options Exchange. Shortly after it was announced, Litecoin’s prices also went up.
Addition to major exchanges
The altcoin itself has also been added to major exchanges around the world, contributing to its bullish activity. For instance, Litecoin was added to Coinone, South Korea’s second largest cryptocurrency exchange, late last year. With its presence now on one of the biggest crypto-platforms in the world, it’s possible that more people will start trading the altcoin, boosting Litecoin’s value even higher.
Strong demand in Asia
It’s the news that LTC cryptocurrency has been in high demand in Asia, particularly in Japan and the aforementioned South Korea. Similar to Ripple, analysts are predicting that the recent interest from that region will attract a flood of investors. This year, experts suggest monitoring how Litecoin does in these Asian markets. The altcoin’s surge may rely heavily on their performance in Asia.
Impact of its founder’s social media
One of the biggest factors that influenced Litecoin’s surge last year was its founder’s social media activity. Charlie Lee’s Twitter announcement on letting go of almost all his Litecoins boosted the altcoin’s price. He confessed that he thinks his social media posts affect the economic activity of the cryptocurrency he founded, raising the issue of a possible conflict-of-interest. He then stated that instead of trading, he will now focus more on further developing Litecoin, adding new features and upgrades that he has teased on Twitter.
But what about predictions concerning Litecoin cryptocurrency? As unpredictable as Litecoin is, experts are still convinced that the cryptocurrency will grow even more in the current year. Some have even projected that its price will soon reach the $1,000 mark. The factors above have been helpful in boosting Litecoin’s value, but it still remains far behind other more popular cryptocurrencies in terms of market cap. With such fearless forecasts though, it’s not a question of if, but when Litecoin will be able to catch up to the likes of Ethereum or even Bitcoin.
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