Litecoin News Update
On Monday morning, cryptocurrencies once again landed in purgatory. There’s red splattered everywhere and it almost seems like another correction is in the cards. Wait, isn’t that how we feel almost every time there’s a major price drop? So, today’s Litecoin news should, at least, be of some consolation to you that you are in good hands.
We may now have a modest confirmation that people are, in fact, beginning to use Litecoin as their go-to “payments coin.”
Litecoin founder Charlie Lee tweeted a snapshot of Litecoin’s transactions volume as a percentage of market cap, comparing it to the other top altcoins. Hands down, Litecoin beats them all.
At the time of press, Litecoin was maintaining this lead. About $3.81 billion worth of payments has been made using Litecoin in the past 24 hours. That’s about 26.81% of its market cap. (Source: “Cryptocurrency statistics,” BitInfoCharts.com, last accessed January 8, 2017.)
You may ask why this matters. It’s because Litecoin is vying to become a “medium of exchange” for the digital world. Its end goal is to complement, if not fully substitute the slower and more expensive cryptocurrency, Bitcoin. To achieve that, however, LTC prices must stabilize to become more predictable.
That’s exactly why Lee insists that investors should care more about the number of transactions being conducted using Litecoin than its price. Lee says that he cares “very little about market cap.” Putting it in his words, “People need to actually use Litecoin. The price will follow.”
The bitter truth about cryptos is that they are fickle investments. Because of their highly erratic price movements, it is difficult to predict their next move. So you must have nerves of steel to withstand their dizzying ups and downs.
For instance, in the past five days alone, Litecoin has dropped as low as $229.00 and then gone up as high as $300.00 apiece. Such price oscillations would seem bizarre in traditional investments like stocks, but they are a very common sight in the crypto-world.
Chart courtesy of TradingView.com
At the time of writing, the average Litecoin price was down by about 13.07%, with the average LTC to USD rate at $258.77.
Once again, Koreans are primarily driving liquidity in Litecoin, with about one-fifth of all LTC trades flowing in from the South Korean exchange OKEx. The U.S.-based GDAX is second in line in terms of trade volume.
Litecoin is slowly but surely headed in the right direction. Lee’s dream of seeing it becoming the ultimate payments coin is gradually reaching fruition. We’re optimistic in our Litecoin price prediction for 2018 as we stick with our LTC price target of $400.00.