Litecoin price rose to a record $64 following a surge in trading volume on South Korean and Chinese exchanges.
According to data from CoinMarketCap, the litecoin price first broke $50 during the November 2013 market melt-up. It was unable to sustain that mark for even a single day, and by June 2014 litecoin had fallen to single digits. Litecoin was unable to break past $10 for the next 3 years, but the activation of Segregated Witness (SegWit) on the LTC network breathed new life into a coin that once held a market cap larger than any cryptocurrency except for bitcoin.
SegWit activation corresponded with an overall bull run in the crypto markets, and the litecoin price soared, briefly crossing $50 again on several occasions in June and July. The late-July market correction reduced the litecoin price to $40, but LTC began to climb at the beginning of August. That climb was gradual but steady, and by August 24 the litecoin price had again broken through $50.
But unlike previous run-ups to $50, the litecoin price did not stop there. This time, it continued to surge, punching through $60 on August 27 to set a new all-time high of $64. Thus far, the litecoin price has managed to sustain this new threshold. At present, LTC is trading at an average of $63. This translates into a $3.3 billion market cap, planting litecoin firmly in 5th place in the market cap rankings.
Litecoin’s rise has been accompanied by an eruption of volume on Asian cryptocurrency exchanges. At present, litecoin’s single greatest trading pair is LTC/KRW on Bithumb, which accounts for $181 million in daily volume. LTC/CNY pairs on OKCoin and Huobi account for a combined volume of $250 million, while BTC and USD pairs do not appear until 4th and 5th.
Bitcoin analyst and investor Tuur Demeester predicted that a bitcoin-cash selloff would move Asian traders toward litecoin, and this week’s events have mostly followed his forecast.
Another factor behind litecoin’s recent climb could be the impending possibility of cross-network LTC/BTC transaction swaps. Now that bitcoin has activated SegWit, Lightning network technology should facilitate the ability to make seamless cross-network swaps between the two currencies. This will help ensure litecoin remains relevant over the long term and will also encourage further innovation around the LTC network.
Last modified: May 21, 2020 9:17 AM UTC