Litecoin (LTC) Remains an Underestimated Asset, Traders Expect More
According to analysts, Litecoin is an undervalued digital assetcatching the attention of the wider investment community this year following support from PayPal. The Payments giant announced their support, listing the coin among other crypto assets like Bitcoin and Ethereum. Besides PayPal, developers now want to introduce privacy in Litecoin through mimblewimble as the asset’s performance positively correlates with that of Bitcoin.
Litecoin is the digital Silver, based on Bitcoin’s source code, acting more as an experimental platform for Bitcoin. Over the years, the two assets have been maintaining a positive correlation, expanding and contracting on normal conditions in near synchrony. Since Litecoin is now finding utility not only in payments but as a launching pad for gaming, analysts point to undervaluation and the possibility of higher highs as the coin is not even halfway from its all-time high registered in 2017. On the other hand, Bitcoin has recouped all of 2018 losses and could rally higher. If the correlation holds, there is an opportunity for traders to ramp up purchases. Already, nearly 66% of newly mined LTC is being purchased by Grayscale pointing to institutional interest.
Impact on the LTC Price:
Bullish. Demand from institutions and support from PayPal coupled with the increased utility of Litecoin’s high throughput and low transaction costs are enough props for the asset to rally now that it has been underperforming BTC. There is enough headroom for LTC to keep track of BTC and maintain their direct correlation.
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