Bitcoin Price Gets Closer to $4,000, Can Litecoin (LTC) Pass XRP (Ripple)?
Bitcoin (BTC), the most popular digital asset in the market, has been growing during the last few weeks.
Could Litecoin Reach the Third Position in the Market?
Since reaching a bottom of $23 back in December 2018, Litecoin has increased its price by more than 100%. Due to this fast growth in a short period of time, there are several enthusiasts that are wondering whether it is possible for the cryptocurrency created by Charlie Lee in 2011 to surpass XRP as the third largest digital asset in the market.
According to the SFOX volatility report, Litecoin experienced increased volatility and price increase when privacy features were announced.
The SFOX volatility report reads as follows:
“Litecoin volatility spiked when Litecoin Foundation announced it’s exploring the integration of Mimblewimble, a protocol offering privacy and fungibility to blockchains. In March, keep an eye on how privacy news moments impact markets, such as recent revelations over Coinbase’s third-party service provider selling client data.”
Due to the fact that Venezuela is living an economic, political and social crisis, individuals in the country are using virtual currencies, including Litecoin, to move funds, pay for goods and services and receive money from family living abroad.
These things and the upcoming halving that is going to be affecting Litecoin in the future could eventually help the digital asset reach higher levels in the short term. Nevertheless, this might not happen.
Since September 2018, Ripple’s XRP is in a bear trend. Although it seemed that it was able to recover from the bear market, the digital asset fell from $0.6 down to $0.3 in just a few months. Nonetheless, Ripple continues to sign new partnerships with companies around the world to start using different products developed them.
Although Litecoin enthusiasts expect the digital asset to keep growing and eventually surpass XRP, there is still a long way for it to happen. XRP has a market capitalization of $12.99 billion while Litecoin has a market valuation of $3.51 billion. Litecoin would have to increase 270 percent to reach XRP. That means that each LTC should be worth close to $215 before being able to surpass XRP.
However, XRP could drop to $0.085 to reach $3.51 billion market cap, a further drop of 97%, which seems not close to happening.
Mati Greenspan, a senior market analyst at eToro, wrote that the number one real-world usage of Litecoin seems to be a settlement method for crypto traders. In general, LTC is used by people to send funds between crypto exchanges since it is cheaper and faster to do it with Bitcoin. He then mentioned that with the upcoming halving event, it is likely for it to outperform the crypto market.
Litecoin is expected to be halving as soon as on August 7, 2019. The rewards that Litecoin miners will receive will drop from 25 down to 12.5 coins. This will be reducing Litecoin’s inflation rate per annum to 4.26% compared to 9.02% now. If there is a reduced supply issuance, with higher demand in the market for this digital asset, the price could start to move upwards in a faster way.
Litecoin is currently being traded around $57.55 and it has a market cap of $3.51 billion.
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