The gradual warming of cryptocurrencies by financial firms combined with retail investment and institutional interest has paved the way for litecoin to regain momentum in 2021.
Litecoin is riding the bull market to its next level of resistance
Litecoin got off to a challenging start. In late 2017, its founder Charlie Lee reportedly sold his entire bag of LTC “to focus on developing the project”. Lee understandably received a lot of criticism for his decision.
The founder, who goes via the Twitter handle Satoshilite (a reference to Bitcoin creator Satoshi Nakamoto), did not hold back and repeated a year later:
I sold because holding LTC made it a situation where I can do something to pump value in the short term. but is bad for the long-term success of Litecoin. I didn’t want this conflict. I’ve explained this many times. If you don’t understand everything yet, I can’t help you. Be gone
– Charlie Lee [LTC⚡] (@SatoshiLite) July 7, 2018
Interestingly, LTC had a 5,000 percent jump in December 2017, though the 2018 market correction brought it back to pre-jump levels of around $ 26.
The gradual warming of large institutions towards cryptocurrencies represents a significant change in attitudes compared to the last Bitcoin boom in 2017. In October last year, PayPal entered into a partnership with the New York-chartered trust company Paxos and announced that its users would be able to trade directly with Cryptocurrency to enable their Paypal accounts.
Square Inc, a financial services and payments company led by Jack Dorsey, CEO of Twitter, bought $ 50 million worth of Bitcoin shortly thereafter. That decision rewarded the company with a 10% increase. Regarding Litecoin (LTC), Visa has introduced an LTC-only Visa card that can be used digitally and physically in the US.
All of these crypto adoptions work together to create a network effect, as crypto assets like Ethereum, Bitcoin cash, and Litecoin appear to be some of the selected altcoins that will benefit the most. In addition, Cryptwerk lists over 2,200 companies that currently accept LTC as a means of payment.
LTC is currently the 8th most valuable crypto asset with a market cap of over $ 14 billion this week.
The recent takeover by financial firms has had an impact on retail investors. Litecoin has been in the uptrend since September, gaining over 350%. Although it struggled to overcome its critical resistance at $ 170 until recently, it is now breaking above this key level, bringing the bull market to its next resistance level at $ 228.
The diagram for active addresses clearly shows the LTC dynamics in the second half of 2020:
Until the beginning of 2021, the transaction history also shows steady growth for LTC. It’s a trend, no longer a singular leap:
Institutional interest followed when Grayscale, the world’s largest crypto asset manager, bought 6,987 Litecoin just last week, bringing the total value of Grayscale’s LTC assets under management to over $ 250 million. Institutional investments make the development of a coin even more powerful, as this type of investment is the result of thorough research combined with calculated, data-driven predictions.
Lee’s “original sin” ended last weekend when Litecoin Foundation project leader David Schwartz tweeted a public repayment for Lee, indicating that Lee was selling his LTC for an average of $ 205, a value that now it was suppressed.
. @ SatoshiLite sold its batch of #LTC for an average of $ 205
Everyone can shut up now.
– David Schwartz (aka – Dasch) (@ DaddyCool1991) February 13, 2021
How do you feel about Litecoin – bullish or bearish? Let us know what you think in the comments section below.
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