Litecoin approached all-time highs over the weekend, as the apparent surge in bitcoin extended to the altcoin market.
LTC/USD Price Levels
LTC/USD reached a high of $88.22 on Sunday, its best level in nearly three months. At press time, prices were up 8.4% at $85.93 for a market cap of $4.6 billion. That’s enough for seventh spot on the global cryptocurrency chart.
Trade volumes have broken above $381 million over the past 24 hours, with major exchanges GDAX, Bithumb and Bitfinex accounting for the bulk of the activity.
LTC/USD has strong momentum nowt hat prices have broken out of the $72 resistance range.
Litcoin prices have been surging all month as excitement over atomic swaps grew. Litecoin is seen as a major cog in the push toward atomic cross-chain transactions. That’s because every major cryptocurrency can be traded for LTC on the open
Atomic swaps seek to bring interoperability between altcoins and the original bitcoin.
The LTC/USD cross has added more than 63% this month, and is back within $5 of record highs. Prices hit a snag in early September as investors reacted to China’s all-out ban on cryptocurrency market. News of the ban shaved $50 billion off the global cryptocurrency market in relatively short order. Markets have more than recovered even as China shows reluctance in reinstating cryptocurrency trading.
For all the euphoria surrounding Litecoin, it appears that much of the buying has been confined to a few notable addresses. The Litecoin Rich List indicates that most users hold less than 100 LTC units, with 69 addresses holding nearly 38% of the total. The richest Litecoin address holds 1,420,001 units, which is equivalent to nearly $122 million.
Broader demand for the digital asset is also partly in response to the growing appeal of bitcoin. Widely regarded as the ‘silver’ to bitcoin’s ‘gold’, LTC is considered to be more stable than the leading digital currency.
In addition, Litecoin is one of three cryptocurrencies offered by Coinbase. Bitcoin and Ethereum, both of which are at record highs, are the others. This gives LTC even more clout in the investment community.
2018 and Beyond
If 2017 was bullish for cryptocurrencies, 2018 is expected to see a much more concentrated stake in the altcoin universe – that is, if you believe investors are looking for the most innovative coins. When it comes to innovation, very few altcoins offer the same value as Litecoin. The digital token has quickly emerged as one of the fastest and most affordable transaction units on the market.
With the exception of Ethereum and perhaps Ripple, Litecoin is also one of the best marketed altcoins. This will give it broader mainstream appeal as institutional traders look to diversify in the cryptocurrency space.
If the recent price trajectory of Ethereum is any indication, Litecoin may catch a favorable tailwind as demand extends from bitcoin to the altcoin universe. Unlike bitcoin, which is valued at more than $9,000, Litecoin remains highly affordable to investors.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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