The price of Litecoin was good, and it touched a month high only a few days ago: but like most of the crypto-market has fallen from a precipice in the last 48 hours. Although at the time of writing it has recovered $ 55.67 and a market capitalization of $ 3.24 billion, it is still far from its $ 70 peak.
So, what went wrong?
The simple answer is: nothing. The surprise is that Litecoin has risen to those heady heights, but the correction is in perfect harmony with the rest of the market. For better or worse, Litecoin's performance is both a victim of Bitcoin's policies and the beneficiary of its rise.
Diversification, as we pointed out above, is still a myth in the world of cryptocurrency, and the price of Litecoin seems inexorably linked to the value of Bitcoin.
Lemmings Rushed To The Cliff
When it slid under $ 68, the cryptocurrant lemmyds threw themselves into the abyss together and rushed to sell. The Momentum effect works in both ways, but the fall of Bitcoin could have got him in trouble in the first place.
The market fell by double-digit percentage and Litecoin (LTC) lost 11% in its market capitalization. In part, investors broke away from riskier investments and headed to the relatively safe banks of Bitcoin, whose dominant market position grew during this 48-hour decline. From a minimum of 52.85%, the Bitcoin domain reached a maximum of 55.14%.
But it may have been the unstable rise of Bitcoin to cause the decline of Litecoin in the first place, given that much of the market is linked to the prices of Bitcoin securities. When Bitcoin reached a resistance point of $ 7.400 and headed south, the entire market suffered a decline.
Litecoin was not the only bitcoin to rebound from just under the $ 6,500 resistance point. If Bitcoin breaks in for $ 6,500, then the graphs suggest that Litecoin could follow the example and attack its much smaller point, $ 60.
The long-term potential of Litecoin?
Although commonly overshadowed by Big Brother Bitcoin, there is no reason to believe that Litecoin will soon become irrelevant. Litecoin has been on the market since 2011 and in 2013 reached a market capitalization of $ 1 billion.
Many experts have supported Litecoin in recent months and has one of the greatest profiles in the altcoin space. After a recent rebranding and good publicity in advance of the upcoming Litecoin Summit in San Francisco, there is no reason to believe that this crypt will die out soon
Last year became the first big one cryptocurrency to adopt the SegWit system and also adopted the Lightning network, which carried out a 1 second transfer of Litecoin LTC from Zurich to San Francisco.
Litecoin Blockchain is better than Bitcoin
Litecoin's blockchain offers faster transactions than Bitcoin, with 2.5 minutes blocks and negligible transaction fees. This (besides an astonishing recession in Monero, after his privacy has been questioned) made him a favorite on the Dark Web.
This was a blessing and a curse, since the Dark Web has negative connotations. However, it provided a proof-of-concept and showed that Litecoin is a viable option for payment systems.
But in the short term, its fortunes seem to be linked to the Bitcoin protocol from which it had been bifurcated.
objectively faster than Bitcoin, it remains to be seen if Litecoin is fast enough to keep up.
The author is not currently invested in any digital currency.