All major cryptocurrencies have been struggling during the bearish crypto-winter but litecoin has been trading with a significant progress. So far Litecoin (LTC) has rallied more than 100%, spiking from $30.35 on January 1 to $62.77 on March 17, according to the data from CoinMarketCap.
Prime dealer SFOX explains the reasons in and industry report sharing the various key factors that affected the price of litecoin. According to the report, 2011 launched litecoin was developed to be a "frictionless, borderless, peer-to-peer electronic cash." Anything that aids to satisfy this motto can boost the price of litecoin.
Following its release various businesses started accepting litecoin as a mode of payment. The digital currency experienced advancement when the Twitter account for mobile app Spend announced it was offering litecoin functionality, which allows individuals to utilize cryptocurrency as a mode of payment for 40 million global merchants.
To decrease its transaction time litecoin has been developing methods to implement in its network which is crucial in helping this digital currency serve as a reliable medium of exchange. The number of active nodes and payment channels on litecoin's lightning network has increased significantly which helps in rapid payments.
Over the last year litecoin’s transaction fees has reduced significantly making it easier for users to depend on this cryptocurrency as mode of exchange. Transaction fees have declined to nearly 75% in a single year according to BitInfoCharts data analyzed by SFOX.
Another major milestone that could spike litecoin prices is the halving event scheduled for later this year. In August this year there will be 50% decrease in the mining incentive decreasing the rate at which new litecoin enters the market. The price of litecoin will go higher as investors might have started pricing in the event.
Another major factor that affected the price of litecoin in the last few months is the anticipation by the litecoin and cryptocurrency enthusiasts on the surrounding potential upgrade that could offer the digital currency's transactions with strong privacy.