Litecoin Price Rally has the $200 Range in its SightsDecember 9, 2017
Litecoin network and its asset, LTC, have been recently entering its biggest rally of all time in terms of asset price but also market capitalization. In a period of only two days, the price of LTC has climbed substantially and at this point stands at $152. This is a lot higher than the previous historical top price of around $80.
This price came about after several records being broken and the rally continues unabated. Now many believe that the actual resistance point will be reached only at the $200 price range. This is incredible news to anyone who has been following the same cryptocurrency over the past year, even more so to those who had been sticking with it since its launch.
Now, there appears that the LTC potential some of its early adopters always believed it began to manifest itself to the rest of the world. Like with many online ventures, including crowdfunding, eSports, and social media, the underdog can quickly change its position to one of power. It is too soon to say if this happened to LTC, but the trends are pointing towards a digital currency that is gearing up to increase its influence in the cryptocurrency domain.
The BTC Surge
All signs show that the LTC has reacted well to the bitcoin’s surge that started earlier this week following a massive run. In its wake, the highest price of BTC currently stands at over $17k, the likely result of the incoming bitcoin futures products that will soon appear at huge financial companies.
Now, BTC might be finally starting to cool down, but LTC is in the domain of a 100% price increase that took place in a single day. Right now, LTC is trading at over 0.01 BTC, which is a price comparison that has been historically difficult to achieve and to remain at. End of 2017 seems to be a different beast, with the price of litecoin coming ever closer to $200.
What is potentially even more impressive is the fact that the market capitalization is also on the rise. Now, LTC network is the six-larger in terms of market capitalization. Its value right now is in the range of $9 billion, a figure that was very unexpected at the beginning of 2017. This puts the litecoin network in front of Dash, NEM, Monero, and bitcoin gold.
The Reason for the Price Rally
Like they often do, analysts struggle to find a complete explanation for the LTC surge and what does it mean for other digital currencies. As the price chart clearly shows, the BTC price push has not impacted every cryptocurrency.
In fact, many believe that the dwindling support for BCH/BCC, as bitcoin cash is known, might be the reason why altcoins are becoming once again more interesting to the investors. But, the problem with this theory is that most of these took a beating during the bitcoin’s rise in the previous week.
Bitcoin cash is among the biggest losers and since then, the very fork has been put into question. Other altcoins have been able to recover during the past few days. Bitcoin cash has not fared so well, making some wonder if the digital currency might be in jeopardy.
However, a clear sign about this dilemma can be found with CoinBase and its upcoming release of bitcoin cash funds to its users. This shows that the problems in which BCC found itself will only last for a short while.
The Silver Network
The bonds between the litecoin and bitcoin network is long-standing and one which has been very fruitful almost from the first moment. Historically, the network has played a crucial role for BTC as a smaller and more controlled setup for testing out features and additions to the code.
This was a great possibility for bitcoin being that the network did not need to allocate its resources for the same testing procedures. On the other hand, litecoin managed to get somewhat of a big brother type of a figure, which lent some of its credibility to LTC.
In fact, the creator of the network, Charlie Lee, always upheld a very supportive approach to bitcoin. This will clearly stay the same in the future and the previous price bumps showed that he does not plan or want to make any changes in his positions.
In this mutually-supportive environment, LTC has been able to grow and develop away from any unwanted investor pressure or media scrutiny. For most outside of the digital currency circles, the very name of litecoin network probably still means very little.
Yet, the closeness to the BTC allowed many to create a potential future where the LTC is the “silver network” to bitcoin. This would mean that somehow, LTC would become the second most relevant digital currency, even though not necessarily according to its market cap or coin value.
The LTC Flippening
In 2017, the term Flippening has definitely been used and misused more than most cryptocurrency catchphrases. During the ICO rush of the early months of the year, it was used to point to the possibility of ETH becoming the dominant cryptocurrency in terms of market cap. However, the Chinese ban on ICOs and overall change in the attitude towards them has stopped the fast growth of this network.
At the same time, ETH price is doing well with the $500 record reached well before the New Year. But, with the scenario of ETH market cap reaching BTC out of the picture, some are trying to connect LTC as the new potential flippening candidate.
Even for holders of LTC who would love to see the prices go up, this makes little sense. The capacity of the network, while technically sound (LTC integrated SegWit 2.0 before any other network) is still far too lacking when it comes to trading levels even close to ETH, not to mention BTC.
Because of this, there is practically no chance for the silver network scenario anytime soon. As of now, ETH is keeping this position both practically and metaphorically. However, LTC is fast showing that it can squeeze BCC out of the picture and take the place of the “bronze network”, which would be great news for anyone holding it.