One day in the currency circle, ten years in the world, everyone must have heard the saying "Bit Gold and Lite Silver". The founder of Litecoin, Li Qiwei, was inspired by Bitcoin and created Litecoin. With the title of "altcoin", Litecoin has experienced ups and downs in the cryptocurrency market for 9 years. Compared with other altcoins that have gradually faded out of the market, Litecoin has become the best developed one in the market. Today, it is indeed constantly refreshing our cognition, and has attracted much attention from the currency circle.
Today, let's talk about Litecoin again, because it has risen to new heights.
Litecoin Price Soars to New Highs for the Year
The price of Litecoin has started a "runaway" mode in the past few days. It first rose rapidly in the evening of the day before yesterday (June 10), rising from $114 to $126 in just a few hours, and then broke through 130 and At $140, it reached its highest point in a year.
According to OKEx market data, when this article was written, the price of Litecoin was temporarily reported at $139.45, an increase of more than 9% on the day. At present, the price of Litecoin is at the highest level since mid-May 2018, and its market value has also surpassed BCH, ranking fourth in the world.
Since June, Litecoin has been "restless" frequently, and there has been a wave of big market prices, leading the rise of mainstream currencies many times, becoming a big dark horse in the currency circle, and bringing surprises to investors. If calculated according to the lowest point in December 2018 ($22.23), Litecoin has increased by 6 times as of today.
Although most of the mainstream currencies are now stepping back and testing to varying degrees, and Bitcoin has also shown signs of weakness, Litecoin has continued to rise at the pace of "unrecognized by six relatives". At present, Litecoin is also the best trend among all mainstream currencies. Its current independent market is fully capable of continuing to rise without overly relying on Bitcoin.
Halving expectations are still the main driving force for price increases
There is no doubt that Litecoin’s price rally and recent rally is largely due to the upcoming halving in August. Under normal circumstances, if the demand remains the same and the output is halved, the supply of Litecoin in the market will be halved, and the price will double. Due to the volatility of the financial market and the effect of chasing ups and downs, the actual price of Litecoin will rise more times. This has been verified in the previous halving of Bitcoin and Litecoin, and the upward channel will open a few months before the halving day.
In mid-2015, before the first round of halving of Litecoin, its price doubled 6-7 times in just two months, from $1.4 to $8.67. Unlike the first halving in 2015, this Litecoin halving seems to have started earlier, and accelerated the recovery of the entire market to a certain extent, thus attracting more investors' attention.
Many analysts also believe that Litecoin may generate further upward momentum in the near future, which may allow it to continue to hit higher highs.
Luke Martin, a well-known cryptocurrency analyst on Twitter, addressed the Litecoin price in a recent tweet, and he believes that LTC may surge to 0.0182 BTC in the near future, higher than the current price of 0.0172.
Cryptocurrency analyst Kiril Nikolaev recently wrote that "LTC will soar to $220 by August 2019." This means that LTC still has a nearly 1-fold increase.
At the same time, some analysts pointed out that the independent market for Litecoin halving in 2015 started in May. If the previous halving experience is followed, the real halving market will not appear until June-July this year.
In addition, in addition to the halving expectation, since June, there have been a lot of good news for Litecoin. First, the 2019 Litecoin Blockchain Technology Seminar Summit, and then, the 2020 US presidential candidate Andrew Yang seems to be optimistic about Litecoin. future.
OKEx also held a 500,000 airdrop event last week in honor of Litecoin production reduction. Anyone who recharges or trades Litecoin in the fiat currency trading area can get a certain amount of equivalent Token rewards. I wonder if you have all participated?
4 Big Data Consolidate Investor Confidence
Having said so much, the key question is, will Litecoin really create another big market as analysts said?
Let's look at a few data from some fundamentals.
First, the total number of accounts. According to Gikee data, with the strong recovery of LTC price, Litecoin's on-chain data, especially the number of accounts, is steadily increasing. LAlthough the change trend of the total number of Litecoin accounts is related to the currency price and market value in circulation, its growth is more stable and rhythmic than the currency price, indicating that the value of LTC is being recognized by more and more new users.
Second, transaction data. From the data point of view, Litecoin has got rid of the shackles of the bear market, and the transaction data on the chain is on the rise.
Data source: coinmetrics
Third, active users. Active users on the Litecoin chain hit several small peaks in April and May respectively, and the overall trend is good.
Fourth, mining computing power. Although the halving of Litecoin will directly affect the income of miners, it does not seem to affect the enthusiasm of miners for mining. LTC's computing power hit a record high in the early morning of June 11, exceeding 400 trillion H/s. It can be seen that miners are generally optimistic about the halving of LTC and are willing to invest more equipment and electricity for mining.
2019 LTC mining computing power trend chart, data source: bitinfocharts
As Jiang Zhuoer, the founder of Leibit Mining Pool, said: For miners, production reduction is not a gate of death, but an opportunity to make money. "Mining is a financial behavior, not a purely industrial production behavior. Even if there is a wave of shutdowns, it will start with high-power mining machines. It will not shut down all mining machines at the same time, and the impact of production reduction on currency prices is permanent. Due to the supply relationship, the reduction in production means a reduction in supply, and in the long run, the currency price must rise.”
Bitcoin Gold Lite Silver, Litecoin Future Can Be Expected
In recent years, Litecoin has been more and more recognized by investors, and the trend has exceeded expectations. The deeper reason may be Litecoin's "down-to-earth".
Compared with Bitcoin, Litecoin made some changes on the basis of Bitcoin when it was created, which has the advantages of faster speed and larger total amount (the generation speed of Litecoin is an average of 2.5 minutes per block, which is faster than Bitcoin Bitcoin is 3 times faster, and 6 confirmations can be completed in 15 minutes; the total number of Litecoins generated is 84 million, and the total amount is 4 times that of Bitcoin,) and Litecoin uses the Scrypt algorithm, making it more difficult to achieve 51% attacks.
Litecoin founder Li Qiwei talked about Litecoin's situation and future plans in a recent YouTube video interview. He said that he also participated in the construction of Litecoin while working at Coinbase, and had a common goal, that is, to make cryptocurrency Easier for common people to use.
Because of Litecoin's faster transaction speed and cheaper handling fees, merchants around the world are more willing to use it as a payment method for commodity purchases and services. Litecoin is regarded by some as the silver in digital currencies, while Bitcoin is Digital currency gold, because Bitcoin has a good storage value and Litecoin has a good payment function. The generation and release of each currency, only when it enters the practical application field to show its value, will generally have a more prominent performance in the transaction market price, and will also improve its market consensus. This may be Litecoin One of the reasons for the "outstanding" performance in this collective callback event.
Although some of Litecoin's functional advantages may have been surpassed by emerging currencies, OKEx Research's analysis shows that in terms of circulation, Litecoin has already occupied a large number of network effects, and its exchange acceptance is very high. People's consensus is the biggest value support of Litecoin at present. However, the consensus, capital, and computing power accumulated by Litecoin over time are still difficult to be overtaken by corners in the short term.
There are 55 days before the halving of Litecoin production on August 6, how will its price behave? At present, there are two voices in the market. One side firmly believes that the halving market is not over, or even just started, and that LTC has a promising upside.
But regardless of whether the halving market can continue, we are willing to believe that Litecoin will develop greater potential with the development of technology and applications. However, friends who participate in investment must pay attention to position management and beware of the risk of callback in the market outlook.
