Litecoin has been overlooked for a while, mostly because of its spike and drop in 2014-2015, from where it got the name "chicken" for its very brief flight. At the same time, Litecoin had a successful 2014, starting at $4 per coin and finishing at $150 and above. What are the factors that changed the fate of Litecoin, making it both stable enough and growing enough to become one of the best-sought assets in the crypto space.
The Popularity of Coinbase Put the Spotlight on LTC
Coinbase has seen its number of wallets explode in the current price spike of Bitcoin. No wonder Litecoin, which is one of the three assets on offer, has also spiked. LTC has been on Coinbase since around may, partnering with GDAX, and it was then that the price started to take off from below $30 to the current levels.
Litecoin is Just Picking Up the PR Efforts
The mentions of Litecoin on social media will only increase, after the recent 50% per day growth. The Litecoin foundation has dedicated itself to popularizing the coin, which is already quite widespread, especially in Asia, and has a wide user base as a means of payment.
Litecoin may continue that trend, soon after displacing Bitcoin on the Steam gaming ecosystem as the viable cryptocurrency for fast and cheap payments.
The Litecoin Network Actually Works
The Litecoin network handles more transactions than DASH, and for now has escaped congestion. At one point, withdrawals from Bitfinex used Litecoin as a faster and more viable option.
The Litecoin network works through more than 50,000 transactions lately, with a significant spike in the past weeks. While there have been times with higher transaction fees, currently the fee is just $0.23, compared to sometimes hundreds of USD for moving Bitcoin. The block time for Litecoin is exact at 2 minutes 1 second, as the reward is still at 25 LTC, with around two more years until the halving. Mining power is flocking to Litecoin, and the digital asset is becoming more secure through a network with a higher difficulty that is not accessible to attack.
Lower Price Volatility
Litecoin is also nick-named "a rock", and in the past months, it has survived market shakedowns remarkably well. With a strong fan base of "hodlers" and a rather democratic wealth distribution, LTC rarely falls victim to dumping- at least not now, when its price shows a clear upward potential. Certainly, Litecoin has had its 20% up-and-down swings, but so far it has established a trend and will probably not repeat the spike and slide from years ago.
LTC has Lagged Until Now
While LTC is highly visible in the top 10 of CoinMarketCap, its price has lagged in the double-digits, way behind leading assets such as DASH and Ethereum. But this trend is now changing, as Litecoin is steadily commanding a price above $150. From then onward, the inclusion of new buyers and the price momentum may take Litecoin to a wholly different range, with predictions of $1,000 by 2018, should the cryptocurrency market keep the inflow of new investments.
Litecoin does not have the Lightning Network activated yet, but there is much confidence in the future of the digital asset- and in the following years, the second layer of transactions may materialize, raising the importance of LTC in worldwide transactions.