rounded corner
rounded corner
top border

Two Critical Factors Driving and Sustaining Litecoin

Bookmark and Share

Over the last two weeks, Litecoin (LTC) had increased its market cap from $3.6 Billion to $4.9 Billion. Its price rising by almost $30 to $90.85. Up by 111% since September, its YTD rise--an astounding 1,488%--dwarfs Bitcoin, yet it remains fairly obscure outside the crypto-cultural sphere.

LTC, whose technological attributes make it something of a Bitcoin clone, is often perceived as the silver to Bitcoins gold. Besides its price being significantly lower, LTC has four times Bitcoins coin supply with a block time that also is four times the speed of Bitcoin (2.5 minutes). Ultimately, LTCs 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. Its 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, LTCs 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 LTCs fungibility, which is a critical feature of a well-functioning currency.

In conclusion, its important to note LTCs 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.

Support and Resistance: LTC is currently testing Resistance in the $90 range with support around the $50.

The risk of loss in the trading of stocks, options, futures, forex, foreign equities, and bonds can be substantial and is not suitable for all investors. Trading on margin or the use of leverage is not suitable for all investors and losses exceeding your initial deposit is possible. Supporting documentation is available upon request. Trading futures, options on futures, and forex involves substantial risk of loss and is not suitable for all investors. Carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources and only risk capital should be used. Opinions, market data, and recommendations are subject to change at any time. The lower the margin used the higher the leverage and therefore increases your risk. Past performance is not necessarily indicative of future results.

Recent articles from this author

About the author

Karl Montevirgen is an independent content writer who specializes in finance and emerging (disruptive) industries. Having been involved in the commodities and FX markets for the last 9 years, Karl writes for several companies and publications in the finance, blockchain, cannabis, and content space. 

You can view his extended profile, list of publications, and theoretical content work on his LinkedIn page. 

Published by Barchart
Home  •  Charts & Quotes  •  Commentary  •  Authors  •  Education  •  Broker Search  •  Trading Tools  •  Help  •  Contact  •  Advertise With Us  •  Commodities
Markets: Currencies  •   Energies  •   Financials  •   Grains  •   Indices  •   Meats  •   Metals  •   Softs

The information contained on is believed to be accurate but is not guaranteed. Market data is furnished on an exchange delayed basis by Data transmission or omissions shall not be made the basis for any claim, demand or cause for action. No information on the site, nor any opinion expressed, constitutes a solicitation of the purchase or sale of any futures or options contracts. is not a broker, nor does it have an affiliation with any broker.

Copyright ©2005-2019, a product. All rights reserved.

About Us  •   Sitemap  •   Terms of Use  •   Privacy Policy