Litecoin: Dark Horse in the Crypto Bull Market
With cryptocurrency in an overall bull run, it is not difficult for a trader or investor with a portfolio in cryptocurrency to make impressive gains. However, the biggest returns are being made in altcoins at the moment, with an increasing popularity in older, more established altcoins such as litecoin.
While Ethereum and DASH both had their time in the spotlight, it seems more volume is shifting to other coins. Ethereum has creeped below the $50 mark, while DASH has tumbled down to $60 since it reached its all-time high around $117.
The large amount of volume is being driven to the fourth most traded currency, litecoin, and an almost 100 percent increase in price within the last seven days just goes to show the spike of interest in this established altcoin.
Two catalysts seem to be driving this market trend; an increase of diversification from investors as well as the introduction of margin trading for BTC, LTC and ETH via GDAX, a regulated exchange under Coinbase’s umbrella. Volumes for litecoin pairs exploded after this announcement, with volumes traded over the past 24 hours near $140 million for the altcoin.
Many traders seem to be interested in moving portions of their holdings to more stable currencies, as sentiment regarding Bitcoin changes. With bitcoin over $1100 again, it is unsure if it will attempt a new all-time high despite the uncertainty of SegWit adoption/network split, or if traders will take profits here.
As described in an Op-Ed about how litecoin may be the best cryptocurrency as a storage of value due to its stability; litecoin stayed near the $4 level in the last several weeks amidst peaks and valleys in other cryptocurrencies and focused on developing its technical fundamentals with work on SegWit.
As litecoin maintained being a dark horse of sorts, price appreciated once the amount of miners supporting SegWit approached majority; something bitcoin is still struggling with. Due to this vote of confidence from the community, litecoin is trading at nearly double that $4 level. As shown below, the cryptocurrency posted a fresh high at $9.61 and the price action is currently sitting below the $10 handle.