Bitcoin
Litecoin Touches $250 As Explosive Growth Continues
Litecoin has risen by more than 30% over the last 24 hours to all-time highs of $250 and still rising. The record-setting cryptocurrency is now up by more than 4,000% for the year having started the year at $4.33.
While focus has mostly been on bitcoin, given that it has risen to as much as $17000, Litecoin has outperformed it given its year to date gains. While the two have risen in tandem, it appears focus is shifting towards the cheaper cryptocurrency as late adopters look for affordable ways to gain exposure in the cryptocurrency space.
Litecoin was priced at less than $100 at the start of the month. As talk of bitcoin futures hit the wires, the cryptocurrency soon broke the $150 mark over the weekend as the bullish momentum propelled it to the $200 handle on Monday.
Litecoin As ‘Bitcoin Hedge’
Litecoin breathtaking rally has however started to arouse concerns. The main concern is that the cryptocurrency is simply riding on bitcoin’s cocktail rather than its own fundamentals. Bitcoin has continued to hit record highs in part because of big headlines and new developments in its blockchain. That has however not been the case with Litecoin.
The lack of new developments on Litecoin to help support the blockbuster run is already fuelling talk that the crypto could simply be trading as a ‘Bitcoin Hedge’. The fact that bitcoin is dealing with a high level of transaction, has reportedly forced some people to switch their attention to Litecoin
“Litecoin is more scalable by nature and with bitcoins mempool currently flooded with unconfirmed transactions Litecoin is looking much better than BTC as a medium of exchange,” said Mato Greenspan, Senior Market Analyst at eToro.
According to CryptoCompare co-founder Charles Hayter, Litecoin is receiving a lot of love in part because it has greater upside potential unlike bitcoin and offers reduced risk.
Diversification Drive
Some observers attribute Litecoin impressive run to the fact that market participants are slowly flocking into the cryptocurrency space. Only until recently have investors acknowledged the fact that the cryptocurrencies may not be a fad but an investment opportunity that could last much longer.
With bitcoin trading at highs of $17,000, investors are looking for affordable ways of venturing into the crypto market. Litecoin being the 5th largest cryptocurrency on market cap has emerged as an exciting investment opportunity given its underlying technology that is similar to bitcoin’s.
Litecoin is destined for more gains as investors move to diversify their portfolio in the crypto space. With bitcoin, trading in overbought territories and Ethereum remaining flat value should shift to other Altcoins.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.
Image courtesy of BTC Keychain via Flickr