The first two months of 2018 wasn’t so nice to cryptocurrency investors. Up until now, Bitcoin is nowhere near its all-time high in mid-December of 2017 at almost $20,000.
If you just started investing in digital currencies and perhaps, if you are looking for the next Bitcoin, then you’d most likely want to focus your attention on Litecoin. Litecoin, which is the fifth largest digital currency today based on market capitalization, has increased in value by more than 21% in February. As for Bitcoin, the leading cryptocurrency even dropped by 4% in value last month.
Altcoins That Also Experienced Losses
Bitcoin isn’t the only digital currency that lost its value this February. In fact, Ethereum and Ripple have lost 20% and 22% respectively. In addition to this, the entire crypto market has been affected falling by 8% last February. Its current market capitalization is at $449 billion according to CoinMarketCap.
What Makes Litecoin Perform Well?
What exactly made Litecoin perform well for the month? For one, Bloomberg Terminal has added the digital currency during the second week of February. Because of this, many investors across the globe were able to see the current price of Litecoin along with the other digital currencies.
Another important factor that may have contributed to the spike in the price of Litecoin is the creation of Litecoin Cash. The fork occurred on February 18, 2018. According to its website, LCC has a target blocktime of 2.5 minutes that allows the cryptocurrency to have 4 times the bandwidth of Bitcoin while making the transactions 90% cheaper than Litecoin.
What makes LCC affect the price of Litecoin exactly? All holders of Litecoin at the time of fork were given 10 LCC, something that has caused the price of Litecoin to spike.
Since the fork, Litecoin Cash that opened at $1.40 climbed all the way to $9.25 in a matter of two days. It later dropped to around $2.38.
Litecoin founder, Charlie Lee, on the other hand, warned investors getting involved with Litecoin Cash calling it a scam. He believes that the creators of Litecon Cash simply want to capitalize on the popularity of Litecoin and mimic the success of Bitcoin Cash.
He mentioned that “It confuses people into thinking Litecoin is splitting. The Litecoin community has no interest in splitting. It’s just some people trying to make a quick buck. And calling it Litecoin gives them some legitimacy”.
In the world of cryptocurrency, even Charlie Lee mentioned that Litecoin was built not exactly to compete against Bitcoin. He considers Bitcoin as the gold standard of cryptocurrencies. With Litecoin, he has a vision of making it the silver of cryptocurrencies. What it offers is a more accessible and even a user-friendly alternative to Bitcoin.
But of course, despite the good performance last month, just like Bitcoin, Litecoin is still far from its all-time high of $365. Will Litecoin be able to get to its record high at the end of December last year soon given its bullish trend?