Over the last two weeks, Litecoin (LTC) had increased its market cap from $3.6 Billion to $4.9 Billion. It’s price rising by almost $30 to $90.85. Up by 111% since September, it’s YTD rise–an astounding 1,488%–dwarfs Bitcoin, yet it remains fairly obscure beyond the crypto-cultural sphere.
LTC, whose technological attributes make it something of a Bitcoin “clone,” is often perceived as the “silver” to Bitcoin’s “gold.” Besides its price being significantly lower, LTC has four times Bitcoin’s coin supply with a block time that also is four times the speed of Bitcoin (2.5 minutes). Ultimately, LTC’s expansive supply and block time allows for quicker and more frequent transactions on a daily basis—a critical aspect of its utility that makes it a potentially undervalued digital currency/asset.
That hashrate and difficulty has continued to increase suggests that LTC mining has sustained itself despite the rise of more popular (and more profitable) cryptocurrencies. This indicates that LTC accumulation may have grown in the shadows of popular speculation but in the clear light of fundamental interests toward its utility. It’s block reward is expected to halve in 2019, from 25 to 12.5.
Like Bitcoin, LTC is currently has pseudonymity and not anonymity. But Charlie Lee, LTC’s creator, says that a Confidential Transactions feature–which should make LTC fully “anonymous”–will soon be implemented “when it is ready.” Lee and his team are also working to improve LTC’s fungibility, which is a critical feature of a well-functioning currency.
In conclusion, it’s important to note LTC’s potential for utility, and the fact that its mining support steadily increased in the context of relative obscurity. One would have to consider the motivations behind the efforts that have driven its market cap from $212 million to $4.9 billion in the course of a year despite its lack of mass popularity among the speculative crowd.
It is currently testing Resistance in the $90 range with support around the $50.
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