Litecoin Price Forecast – Is Dash a Major Threat to LTC Prices?
Litecoin News Update
Litecoin prices soared last week as tensions between Bitcoin and Bitcoin Cash rumbled to a halt. However, there’s one currency that has gained far more from the Bitcoin drama: Dash.
Like LTC, Dash is a decentralized currency looking to build a wide user base. Both Litecoin and Dash boast faster transaction speeds than Bitcoin, not to mention lower costs and a more engaged community of disciples.
But why is Dash gaining more than Litecoin? Its price has soared 72.7% in the last month, whereas LTC prices only advanced 27.2%. What’s going on?
One possible explanation is that Dash is starting from a lower base than LTC, meaning that investors have exploited less of its upside.
Another is investors are genuinely seeing it as a better replacement to Bitcoin, in part because it offers privacy options when sending payments.
Whatever the case may be, Litecoin investors need to be wary of a rotation to Dash. There are a lot of niches within the crypto space, but Litecoin and Dash are undoubtedly competing for the same slices of bacon.
What’s Going on with Litecoin Prices?
On Tuesday morning, Litecoin prices dropped 0.65%, bringing the Litecoin to USD exchange rate down to $70.82. At the same time, LTC fell more sharply against BTC, bringing the Litecoin to Bitcoin rate down 2.29% to 0.00866285 BTC.
Daily Litecoin Chart
How Active Are Investors?
Between November 19 and 20, trading volumes for LTC fell 22.3%, from $243.06 million to $188.98 million. It was a steep fall, to be sure, but nothing investors should take too seriously.
Trading activity bounced up overnight, bringing the 24-hour volume to around $240.64 million. This shows how incredibly fickle investor sentiment is in the crypto space, and how much traders flock from one currency to the next.
Where Is LTC Demand Coming From?
There is no single exchange that dominates LTC demand in the way that, say, Bithumb dominates trading for Ripple.
However, GDAX—an American exchange linked to Coinbase—accounted for 20.55% of Litecoin trading. And since Bitfinex (another U.S. exchange) added another 12.80% of U.S.-based demand for Litecoin, we can safely say that a plurality of trades occurred as LTC/USD pairs.
Bithumb, meanwhile, accounted for 14.75% of LTC trades as LTC/KRW pairs.
We maintain our $200.00 Litecoin price forecast for 2018, albeit with a cautious eye on the ongoing Litecoin news regarding Dash.
Also Read: Litecoin Price Prediction 2018: Is Litecoin Potential Higher Than Current Counterparts?