2019 is overall going great for the cryptocurrency space till now, but if we look at the cryptocurrencies that are benefiting the most since the beginning of this year, two clear winners stand out from the crowd: TRON and Litecoin. Litecoin’s growth, in particular, has been truly astonishing. It has more than doubled in price since the beginning of this year as a number of things worked in its favor. On 3rd of April it made a high of $98.89, which is its highest price point since November last year. If measured accurately, this is a 230% growth since the beginning of this year.
Since then some of its lead has reduced as profit booking took place, but it’s still up more than 200%. As far as generating returns is concerned, it has surpassed not only Bitcoin but also Bitcoin Cash, Ether and XRP. Analysts thing that a number of factors are at play in this phenomenal rise of Bitcoin’s sibling. Here we’re going to take a look on those factors after analyzing the possible factors behind the sudden 15% rally of market three days ago. Let’s get started:
The Halving Event
In August Litecoin’s mining rewards will decline by 50%. This will reduce the supply of Litecoins entering the ecosystem, and the community seems to have already priced this upcoming event. This has happened earlier too, when Litecoin traders priced the upcoming events sooner than expected.
Increasing adoption among merchants
The adoption of Litecoin among merchants is also on a rise. According to a recent report of SFOX tens of thousands of merchants worldwide are accepting Litecoin now. The rising adoption is also a result of crypto-based POS terminals, crypto debit cards and other similar products that facilitate crypto payments, including payments in Litecoin. The Litecoin Foundation has forged a number of partnerships to ensure that its adoption grows through these channels. According to David Schwartz, the project director of Litecoin Foundation:
“The partnerships the Litecoin Foundation has been able to forge over the past 4 or 5 months have increased awareness beyond that of the crypto echo chamber many within the space forget we tend to reside in.”
Faster transaction speeds, and declining fees
Another reason why Litecoin’s adoption (and therefore price) is growing rapidly is that its transaction processing is getting faster and cheaper. Over the course of last few years LTC’s transaction processing speeds have grown consistently due to addition of nodes while its transaction fees declined. What else would you expect from a cryptocurrency for mass adoption?
In short, Litecoin is quickly emerging as a prominent and reliable payment medium around the world. It’s one of the few cryptocurrencies that can become part of people’s day-to-day lives. Let’s see how things go for it in the coming days.