Litecoin is Rocketing Higher. An Opportunity?
After a decline of 90% from $350 to $30, Litecoin has been on a steady rise since last week. The coin is now the 5th most valuable coin by marketcap, and shows signs of further gains. Why is this happening, and is this a time to buy?
Litecoin is the famous product of Charles Lee, and is famous for its speed of transaction, low fees and usage in the Lightning Network alongside Bitcoin. Litecoin is a largecap cryprocurrency with a marketcap of $3.35 billion and a position of fifth in terms of marketcap.
A large driver of Litecoin's price is the new remittance service in Venezuela, where citizens can exchange Bitcoin and Litecoin for currency. Venezuela is in a major financial crisis following massive inflation of their currency, where cryptocurrency has filled in the gap. Litecoin' s fast transaction speed and low fees make it ideal for day to day transactions.
Litecoin flew from $30 to $55 in a matter of weeks, but does not look overbought. The implementation of the Lightning Network and real-world use case make Litecoin a buy below $70.
I am not a financial professional. Do your own due dilligence.