Crypto markets have barely moved in the past couple of days as Bitcoin teeters on the edge of a big correction. There is always a bit of fomo going on though and Litecoin is getting it with another 10 percent gained today.
There has been very little action for the majority of cryptocurrencies over the past day or two. Bitcoin’s consolidation has left the rest of the altcoins in limbo. There are a couple moving though and Litecoin keeps strengthening as fundamentals push LTC even higher.
Momentum is building as the premise of reduced supply and increased demand and mining difficulty in less than two months drives prices higher. Scarcity is a big driver of demand and with almost 74% of all Litecoins already minted there is only 21.8 million left to be mined. Many have advocated that the silver to Bitcoin’s gold should really be priced at around 10 percent of BTC. This would put Litecoin at $780 at current prices.
Back to reality, resistance currently lies around $120 which is where LTC topped out during the recent run late last month. It is the highest price Litecoin has reached in 2019 and an epic 300 percent higher than it was trading at on January 1st.
Daily volume has reached $4.7 billion which has sent market cap hurtling towards $7 billion. At the time of writing LTC was only $100k or so behind Bitcoin Cash so a flippening for fourth could well be imminent. EOS has dumped in recent days and is now over $1 billion in market cap behind Litecoin.
Network hash rate is also at an all-time high and is likely to increase over the next 60 days. According to the charts hash rate is currently 373.918 Thash/s which is the total amount of computing resources dedicated to the network. According to the official website the increase may be caused by the rumored new L5 Bitmain ASIC Scrypt miner that has been hinted at online.
If Bitcoin corrects further as expected, Litecoin may well drop back below $100, but it won’t stay there for long. There is every possibility that it could double from current prices as we approach August. The fomo is pretty strong leading up to a halving event as past events have shown.