The weekend was nerve-racking for the cryptocurrency market — particularly for Bitcoin. A strong correction dropped its value by almost $5,000, even with recent good news of Bitcoin futures hitting Wall Street. The value of virtual gold is rising again and it’s a little above $16,000 at press time.
Another surprise was Litecoin’s price explosion. On Friday, its value – which was around $96, took off and almost doubled in 24 hours. The trend remained during the weekend, with some high and lows. The virtual silver began the week on the same trend and it’s currently valued a little over $180. The total increase over the year is more than 4000%! But what may have caused the spike we’ve seen on the last days?
THE LITECOIN NETWORK WORKS REALLY WELL!
The Bitcoin network has come under fire recently for it’s cumbersome infrastructure. The increased adoption of the biggest cryptocurrency, and consequently, of the number of transactions, is slowing the network. As you read this article, there will be over 100,000 unconfirmed BTC transactions. High fees are also harshly criticized. Even with the success of the first Lightning Network transaction, users will not notice big changes for some time.
Litecoin’s network on the other hand, is proving to be fast and effective. It already manages to handle more transactions than Dash, and there are currently fewer than 300 unconfirmed transactions for LTC. Of course, we cannot directly compare LTC with BTC, due to BTC’s widespread use. Even so, in theory, the LTC network is able to handle four times more transactions per second than BTC with much lower fees.
EXCHANGES HAVE INCREASED LITECOIN’S VISIBILITY AND ADOPTION
In May, Coinbase listed Litecoin, and we have recently published an article about the exchange’s record on newly registered accounts. This huge number of new users has increased the visibility of Litecoin as more and more people began to use the coin for its faster network.
Furthermore, some people claim that the recent withdrawal problems involving Bitfinex may have had something to do with the adoption of Litecoin. As users have started to claim that they were able to withdraw their funds using LTC, more people started to convert their holdings into LTC in order to withdraw them. A Reddit topic, created by user petateom, has recently drawn a lot of attention because of that. In the comments, it’s possible to see a number of users claiming to have done the same thing.
LITECOIN FOUNDATION WANTS TO PROMOTE THE COIN
Another interesting aspect is Litecoin’s recent advertising offensive. The cryptocurrency, already widely used in Asia, wants to become even more popular. The recent price increase is sure to make for a bigger visibility on social media. Charlie Lee, the creator of Litecoin, announced last week plans for a “serious marketing push for Litecoin.”
We are starting to do a serious marketing push for Litecoin. This is just the beginning. 🚀 https://t.co/UcaDGpwAHa
— Charlie Lee [LTC] (@SatoshiLite) December 6, 2017
ISOLATED EVENT OR ADOPTION TREND?
All these aspects are collaborating together for Litecoin’s recent price spikes. But only time will tell if it was a momentary reaction from the market, or if there is indeed a trend of a bigger adoption towards the virtual silver as a solid way to pay around the world.