Litecoin Price Skyrockets by Over 15% in a Week, Becomes Second Most Profitable Crypto
Litecoin has been experiencing impressive gains in recent weeks, surpassing Bitcoin’s performance as the overall cryptocurrency market slows down. Over the past seven days, the price of Litecoin has surged by more than 15%, reaching a high of $95.
This increase in value has solidified Litecoin’s position as the second most profitable digital asset, boasting a market capitalization of over $1 billion. The top gainer in this period was LDO, with an impressive gain of more than 36%.
The surge in Litecoin’s price has also led to a significant increase in the value of open-ended futures contracts linked to the cryptocurrency. Coingecko data indicates that the dollar value locked in these contracts has risen to $478 million, the highest it has been since early December. This upward trend in Litecoin’s popularity is often attributed to its reputation as “silver to Bitcoin’s gold.”
Analyzing the trading pairs, the LTC/BTC pair on Binance has also experienced a 15% increase in the past week, mirroring similar movements in the overall cryptocurrency market. This upward trend can be observed through data provided by the TradingView charting platform.
Markus Thielen, Matrixport’s head of research and strategy, believes that Litecoin has benefitted from recent congestion on the Bitcoin network. The rapid growth of Bitcoin Request for Comment (BRC-20) tokens, built with and stored on the Bitcoin blockchain, has resulted in nearly 400,000 unconfirmed transactions. This congestion has made the Litecoin network busier than ever before. On May 10, both confirmed transactions and active addresses on the Litecoin network reached record highs of 580,000 and 830,000, respectively, according to Messari.
Explaining the surge in Litecoin’s popularity, Thielen stated, “Litecoin has gained +17% over the last week because Bitcoin transaction costs temporarily become expensive, and traders are looking for cheaper alternatives.”
However, some experts predict a potential reversal in Litecoin’s price in the coming weeks. As congestion on the Bitcoin network begins to ease, the demand for Litecoin may diminish. Additionally, historical data suggests that buyers tend to gravitate towards Bitcoin every four years, during its halving events.
Instead of chasing Litecoin during this period, some traders may choose to take a short position on the cryptocurrency, as its momentum is expected to decline in the long term.
In conclusion, Litecoin has witnessed substantial gains in recent weeks, surpassing Bitcoin in performance as the overall crypto market slows down. The surge in Litecoin’s price can be attributed to congestion on the Bitcoin network and the search for cheaper alternatives. However, market experts caution that the trend may reverse as network congestion eases and buyer demand for Bitcoin increases. Traders should carefully evaluate their positions and consider the long-term outlook for Litecoin’s performance.
Read more:
- Litecoin (LTC) Surges 8% As Lightning Network Integration Boosts Scalability
- Litecoin Transactions Hit Record Highs Ahead Of Halving Event
- Litecoin Prepares For Third Halving: Impact On Price And Network Dynamics Remain Uncertain