Friday, December 9, 2022

Is the Bitcoin Transaction Backlog Causing a Run to Litecoin?

Is the Bitcoin Transaction Backlog Causing a Run to Litecoin?

All hail The Chikun!  After Bitcoin’s record breaking run and the mania surrounding numerous ICO’s throughout 2017, today it was Litecoin’s turn to get its moonboots on. The coin nicknamed ‘The Chikun’ has currently pumped out a 55% increase in 24 hours. This is propelling its price in US dollars to over $170. On GDAX exchange over $400m worth of Litecoin has been traded.

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In relation to Bitcoin, Litecoin’s price reached over .011 at one stage, well down from highs during the year. However other exchanges like Bitfinex were selling at .0096, providing significant arbitrage opportunities for savvy traders.  Just one year ago Litecoin was languishing at around $4, where it had seemingly been forever. The $4 floor stuck earning it the derogatory label of ‘The Rock’.

Litecoin Creator Charlie Lee’s Renewed Efforts Paying Off

Charlie Lee, creator of the coin that was one of the first cryptocurrencies after Bitcoin and Namecoin. He endured a tough time from the community over the course of the last bear market. Bagholders singled him out for the non performance of his coin and lack of development occurring after the drop from $50 back down into the single digits.

After stagnating for such a long time, Litecoin has found utility in 2017. Many are considering it as a test net for Bitcoin improvements.

Charlie Lee Leaves Coinbase

Lee left his role at Coinbase in early 2017 to concentrate on Litecoin full time. This occurred around the same time that Bitcoin was dealing with the seemingly eternal drama over the implementation of Segregated Witness. Since then Litecoin implemented the ‘Segwit’ upgrade safely and was the first coin to perform an atomic swap.  They are actively working towards deploying Lightning network upgrades.

Today, Lee had a bit of fun with the community, posting to twitter.

Litecoin’s rapid price increase has coincided with his appearances on mainstream television networks, perhaps indicating that interest in cryptocurrency from the masses is reaching a fever pitch. With Coinbase being one of the main exchanges on- boarding users in the US, its addition of Litecoin amongst only a select few coins seems to have served it very well.

Another reason for todays run may be due to bitcoins mempool backeding up. Add in the Ethereum blockchain unable to handle the volume produced by CryptoKitties, Litecoin has found utility for moving value between exchanges.

On top of this, during the mega bull of 2017, in US dollar terms, Litecoin had only roughly doubled its previous all time high of $50, while Bitcoin has moved in excess of 15x.

Or, maybe it is just the Chikun’s turn.

What are your thoughts on the Litecoin bull run? Let us know in the comments section.

Image Source: Reckoner

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