Litecoin has outperformed bitcoin in 2017, demonstrating a staggering 8,000 % increase in value. While it nonetheless stays as a result of the fifth largest cryptocurrency behind Bitcoin Cash and Ripple, it has solidified itself as a quantity one digital foreign exchange.
Since January 1, the worth of Litecoin has surged from $3.63 to $302, as its market cap increased from beneath $177 million to $16.4 billion. The market valuation of Litecoin is in the mean time greater than that of bitcoin in the beginning of 2017.
Potential Factors Behind Rally
Over the earlier 12 months, the bitcoin dominance index has decreased from above 80 % to 56 %. Several analysts have attributed the decrease in the bitcoin dominance index to the migration of consumers from bitcoin to totally different cryptocurrencies (altcoins) paying homage to Litecoin and Ethereum which have significantly lower transaction fees than bitcoin.
At the time of reporting, the median transaction cost of Litecoin is spherical $zero.065, whereas Ethereum’s keep above $zero.5. Due the extreme transaction fees of bitcoin, many shoppers have started to take advantage of Litecoin to course of cheaper and small transactions.
Bitcoin Fees, a bitcoin transaction cost prediction platform developed by Earn.com (beforehand 21 Inc) current that the quickest and most cost-effective transaction cost is 430 satoshis per byte, or 97,180 satoshis for median-size transaction. That is, a very helpful cost of spherical $18.
When the size of the bitcoin mempool is beneath 50 million bytes or is relatively low, transactions can nonetheless be confirmed by miners with lower fees. But, when the size of the bitcoin mempool is larger than 100 million bytes, with out extreme fees, it is powerful to have transactions confirmed inside 24 hours.
More clients have begun to take advantage of Litecoin and totally different choices like Ethereum to course of small transactions with cheaper fees, whereas relying on bitcoin as a powerful retailer of value and safe haven asset.
Still, Litecoin creator and former Coinbase director of engineering Charlie Lee emphasised that it could take a minimal of five years for fundamental buyers to take advantage of bitcoin and litecoin in the precise world.
“I think we’re still maybe five years away before people actually start using bitcoin and litecoin in real world use as a currency,” said Lee.
Where Does Litecoin Price Go in 2018
In consideration of the newest surge in the worth of litecoin, Lee stated that he might be comfortable if the litecoin value stays in the $300 space by the highest of 2018. That is a fairly conservative prediction from Lee, as litecoin has increased by larger than 83-fold year-to-date.
“I would be happy if litecoin stays at around $300 by the end of next year. It’s still very surprising how much it has grown this year. I never like to speculate on prices because I’m always wrong. If I tell you it’s going to go up and it doesn’t, you’ll be upset,” acknowledged Lee.
If additional clients proceed to take advantage of litecoin for cheaper transactions and small funds, the particular person base and market valuation of litecoin will seemingly increase at a speedy cost all via 2018.
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