Litecoin (LTC) Compliments Bitcoin and is Currently Massively Discounted, Says Market Analyst
In an exclusive commentary from Mati Greenspan (eToro’s Senior Market Analyst), Ethereum World News was made privy of a new research paper on Litecoin (LTC) by eToro. In the paper, Mr. Greenspan explores Litecoin (LTC) from all angles such as its history, market statistics, technical background, as well as recent and future developments.
One of the highlights of Greenspan’s commentary, was that Litecoin is not aiming to unseat Bitcoin. He explained this fact as follows:
Unlike many cryptos Litecoin isn’t aiming to unseat bitcoin, it actually plays more of a supportive role, like silver does with gold. The faster and easier transactions make it a bit more usable in everyday commerce and it also functions as a store of value.
As the world’s second major cryptocurrency, Litecoin is one of the most established and trusted names in crypto and it has an extremely vibrant community.
The research paper goes on to outline the recent and future developments of Litecoin as follows:
Litecoin facilitates the implementation of new developments for Bitcoin and crypto in general e.g implementing the Lightning Network and Segwit
Several business are offereing LTC based payments e.g Alza.cz, Wirex, eGifter, CheapAir
Litcoin Foundation bought a 9.9% stake in German WEB Bank which will further LTC adoption through debit cards, online payments and retail implementation
The Litecoin community continues to be loyal and vibrant. It is also famous for inside jokes such as Litecoin’s common nickname of chikun
Market Performance and other Important facts about LTC
The research paper went on to analyze LTC’s recent market performance and stated the following:
Litecoin is referred to as the ‘digital silver’ to Bitcoin’s ‘gold’. It was meant to complement BTC. The research paper also goes on to observe that the ratio between BTC and LTC is rather similar to that of Silver and Gold
Litecoin has a much larger number of daily active addresses (DAU) with respect to its market
cap than all the other currencies considered except Dash
Litecoin has a large relative daily transaction volume than any other currency, suggesting that it is very much active and established more than its price reflects
Litecoin has experienced a very significant correction by falling over 80% to its current price
The research paper by Mati Greenspan went on to conclude that LTC has been oversold and its current price is massively discounted to what it should be worth:
Given that Litecoin has an established and stable working product, as well as significant adoption, this bear market of the whole cryptocurrency industry could have lead to Litecoin being oversold.
Disclaimer: This article is not meant to give financial advice. Any opinion herein should be taken as is. Please carry out your own research before investing in any of the numerous cryptocurrencies available.