Business is booming in the digital world. Cryptocurrencies are still having the best time ever, and Litecoin is having its fell of this same goodness and abundance in the cryptocurrency market. Litecoin, after having suffered a demise that led to it being valued to about $200. This was right after it had shot to about $400 around the same time Bitcoin reached $16000. Well, what can you say; volatility is an everyday thing in the world of cryptocurrency. However, Litecoin seems to be getting back on track with a steady growth recently as it rose above $350. According to CoinMarketCap, the digital currency hit $360.93 on Monday, December 18.
With Litecoin standing at that present price, the stats show that it has appreciated by 8,200% this year. However it dropped to about $350 on the same day which leaves it still around the same 8000% appreciation. These figures shouldn’t really entice one to go head on into the cryptocurrency world wanting to make profit straightaway. Due to the largely unregulated of the cryptocurrency market, you could lose all your investments…just like that. Ever since Litecoin started experiencing a remarkable rise this year most analysts have made several speculations as to what could be really fuelling the engine of Litecoin’s growth.
Litecoin And Bitcoin
Most of these analysts claim that the relationship between bitcoin and Litecoin are a contributing factor to Litecoin’s growth. This, they claim is why Litecoin grows as Bitcoin grows and underperforms when bitcoin also does. Litecoin was named bitcoin’s silver for many reasons. First of all it operates just as bitcoin does but only faster: bitcoin uses 10mins per transaction, Litecoin does so in 2.5mins. The number of Litecoins that can be mined are two times the number of bitcoins that can ever be mined. Moreover, it was also designed to be a lighter form of the much heavier bitcoin.
As bitcoin’s price soared higher that of Litecoin also followed in its steps, according to the managing director of Crypto Asset Management, Tim Enneking. Even though Litecoin is said to be the follower, its growth percentage in 2017 has been quite higher, as bitcoin has increased by only 2000% this year.
A Sustained Interest In Cryptocurrencies
Many investors have rushed into the cryptocurrency circle in 2017 alone, and even many of those who already were in there have stayed in there. This could be largely due to how Bitcoin has grown in this year alone. Its success has led many people to keep their interest in the cryptocurrency market, and this sustained interest has led the cryptocurrency market to grow even more. The market cap of cryptocurrencies now sits as $616.9 billion. That makes the cryptocurrency market’s growth 3,300% in 2017 alone, having begun with $17.7 billion. One investor said
“Litecoin is finally benefiting from the broader interest in Cryptocurrencies, “I see no reason, despite still being very early stages, why the price cannot eventually match or even surpass Bitcoin’s price over time.”
Is This A Market Mania
Many analysts believe that the cryptocurrency market may become a bit “frothy”. Arthur Hayes of BitMEX stated that
“Humans like to buy in what has previously gone up. The positive feedback loop drives the price higher and higher, until it doesn’t. The skill is getting out before everyone sobers up”
Jacob Eliosoff has also shared his view on the matter, describing the growth of cryptocurrencies this year as “staggering”, comparing it to the tech wave that hit the world in the 1990s, beginning around the time of Yahoo’s inception. By this comparison he meant that, just as there was a huge increase in the value of tech assets followed by a huge decrease, same will be experienced in the cryptocurrency market.
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