Cryptocurrencies have bounced back after imploding in early 2019. While all the major digital currencies have bottomed out from one-year lows, Litecoin (LTC) has emerged as a top performer as it continues to elicit strong interest.
A 360% plus rally from one-year lows underscores the love that Litecoin continues to receive in the market. Elsewhere on the market, Bitcoin (BTC), the largest cryptocurrency, has rallied by 135%, while Ethereum (ETH), the second biggest crypto, is up by close to 100%. With a market cap of more than $8 billion, Litecoin is currently ranked as the fourth largest digital asset.
Wider acceptance, especially from institutional investors as well as mainstream institutions, continues to strengthen investor sentiments about cryptocurrencies. The cryptocurrency renascence is likely to continue as more products designed to give investors broader exposure to digital assets hit the market.
E-trade Financial Corp is in the process of creating a platform for trading cryptocurrencies. AT&T Inc has made it possible for people to pay their bills using digital tokens. Facebook is also believed to be in the process of launching its own digital token.
While Litecoin transactions are down by nearly 80% from their peak in early 2018, they have once again started edging higher in line with the spike in price. However, high levels of volatility in transaction fees continue to derail the use of LTC in transactions.
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Litecoin’s strong performance is likely to continue ahead of the much-awaited halving process. The halving process will result in the number of coins miners are awarded being reduced by half. Once the halving process is complete, miners will receive 12.5 LTC for every block created, down from 25.
By cutting the number of coins that miners get per block, Litecoin hopes to reduce supply into the market, something that should continue to prop the crypto price. Halving is not anything new and, in fact, happens every four years.
The last time Litecoin halved its reward price, the underlying price rallied 60% in three months. Litecoin is not the only cryptocurrency that has turned to halving to prop its price. Flagship cryptocurrency Bitcoin is poised to undergo a similar process in May of next year.
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