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Alt Coins Skyrocketing: Litecoin And Ethereum Price Rally

litecoin and ethereum price rally

Alt Coins Skyrocketing: Litecoin And Ethereum Price Rally

 

The Bitcoin Bulls dominated last week with some heavy swings in both directions but mainly upwards. Regulated US exchanges launching their futures contracts also added to the zeal in the crypto-sphere. Litecoin and Ethereum price rally has become monster rally this week. Two of the top traded assets, Ethereum and Litecoin both broke record levels and traded at all-time highs during the Asian trading session this morning.

Founder Charlie Lee remains cautious however and Tweeted that trading was extremely risky.

Litecoin was not alone in the crypto bullpen today. After three weeks of slumber Ethereum finally woke up and headed skywards. From trading sideways between $440 and $460 ETH broke key resistance levels and made moves towards the critical $500 level. It had previously tested this price in late November but failed to break through.

Litecoin And Ethereum Price Rally

Ethereum Price

Litecoin And Ethereum Price Rally

Bitcoin Vs Litecoin

 

The digital currency, which is a fork of digital sibling Bitcoin, rose to as much as $186.89, according to CoinMarketCap.

While these figures are impressive, generating countless headlines about Bitcoin's sharp climb and all the so-called "Bitcoin Millionaires" it has produced, Litecoin's YTD gain is more than twice that of its digital sibling.

Factors Behind the Rally

 

Some analysts have started asserted that Litecoin is a "Bitcoin hedge," as the latter currency's network is dealing with a high level of unconfirmed transactions.

Mati Greenspan, senior market analyst for eToro, was in this camp.

"Litecoin is more scalable by nature and with bitcoins mempool currently flooded with unconfirmed transactions Litecoin is looking much better than BTC as a medium of exchange," he said.

Charles Hayter, co-founder and CEO of digital currency platform CryptoCompare, also agreed that Litecoin is a Bitcoin hedge, stating that while the two are very similar, the altcoin has greater upside potential and less downside risk.

Finally, investors believe that two recent announcements serve as confirmation of Lee’s thesis. First, gaming giant Steam stated that it will no longer accept bitcoin payments, citing rising transaction fees that currently make bitcoin impractical to use for small purchases. Conversely, Bitrefill—a top-up service for prepaid mobile phones—announced that it will accept litecoin, and LTC advocates believe that many other companies will follow suit in the near future.

Advantages Of Litecoin And Ethereum Over Bitcoin

 

The most prominent characteristic of Litecoin is also one that gives it the most potential for disruption and inspires much confidence within the cryptocurrency community. SegWit will allow Litecoin and others who adopt it to use the Lightning Network, which is nearing completion, empowering participants to exchange cryptocurrencies at virtually no cost.

Developers are quickly making headway on the Lightning Network, and it has recently passed almost all the quality assurance tests required to be released to the public.

Cryptocurrency enthusiasts with many coins to explore have increasingly highlighted Litecoin due to its speed. In tests where one user compared the speed of coins being transferred from an exchange to a hardware wallet like Trezor, Litecoin performed best, transferring 23 coins in under 10 seconds. Businesses paying attention to Litecoin’s fast advancements on the payment front are increasingly adopting it into their own ecosystems as well.

The ease of transacting with Litecoin makes eCommerce one of the most suitable environments for adoption, and stores like BTCTrip, Bitify, AllThingsLuxury, and Bitcoin.shop (as well as others) have joined in. Even popular retail ecommerce giant Overstock.com is accepting Litecoin as a form of payment. People can easily pay for gifts, vacations, household appliances, and even precious metals and gems with their Litecoin. While retail adoption is encouraging, cryptocurrency, merchants, exchanges, wallets and other infrastructure are also integrating Litecoin in growing numbers.

Bankex Support For Litecoin And Ethereum

 

Apart from the obvious advantages from a design perspective and trading appeal, participants themselves are benefiting from the ecosystem thanks to growing adoption in eCommerce. Bankex, a unique platform designed to validate and tokenize more illiquid assets like real estate and venture capital portfolios, is accepting Litecoin alongside bitcoin and Ethereum during its token sale.

Platforms like Bankex almost unanimously accept Litecoin because many customers will exchange their other cryptocurrencies for Litecoin in anticipation of a transaction. Until the Lightning Network levels the playing field, investors who want to participate in Bankex’s plethora of autonomously evaluated Smart Assets may prefer to fund the ICO with Litecoin to save on fees.

Although Ethereum still takes the cake in the fundraising sphere due to ERC20, Litecoin likely makes it to one of the top three spots on the Bankex token sale list because of its rapidly broadening appeal and more affordable transfer costs. 

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