The virtual currency Litecoin seems to be pushing forward, as it has broken past its barrier of $100 and is now circling around the $300 price range. The currency is sitting at $352 at the time of this writing. Litecoin has been experiencing an interesting surge as it has raced ahead of cryptocurrencies like IOTA and is now one the largest cryptocurrencies in the world.
An interesting statement was made by Ari Paul on how the whole industry has progressed from what it was in the past, with the market capitalization of Litecoin moving past what was once the entire size of the cryptocurrency market just a year and a half ago!
That means that we’ve hit a significant accomplishment in the value of the crypto space. As more trust and faith are pouring in, more cryptocurrencies grow, which causes the entire ecosystem to grow! If one of the top currencies is experiencing a $10 billion valuation, that signals strength going into the new year.
Earlier today, Litecoin creator and former Coinbase executive Charlie Lee revealed that the market cap of Litecoin surpassed the $10 billion mark, and has recorded a 4,000 percent increase in value year-to-date.
The ex-Coinbase executive and founder of the cryptocurrency celebrated, noting that there was a significant increase in the LTC currency, having shown over a 9,000% increase in value over the course of a year.
He did have a few words of caution on the matter, noting that there has been a significant increase.
“Ok, sorry to spoil the party, but I need to reign in the excitement a bit…
Buying LTC is extremely risky. I expect us to have a multi-year bear market like the one we just had where LTC dropped 90% in value ($48 to $4). So if you can’t handle LTC dropping to $20, don’t buy!”
The price of LTC has been trending upwards slowly over the course of the past few weeks, but it may be heating up for the same reason that the other cryptocurrencies are heating up. There is more overall interest in the crypto industry causing traditional investors to think that they are able to own more of the currency, thus giving them a bigger upswing on the price.
It is certainly necessary to be enthusiastic about the price gains, but at the same time realizing that there will be times of correction, one must approach the overall industry with great caution.
Charlie Lee is correct when he says that with times of great price gains, also comes the potential for a downward cycle:
“Every crypto bull run I’ve seen has been followed by a bear cycle. The market needs time to consolidate. That’s just my experience from 7 years of watching this space. How low and how long it will be is TBD. People need to be aware of this possibility and invest responsibly.”
Some believe that there might be some manipulation going on, as one Twitter user stated:
Yet, others are stating that the benefits of LTC are long-term, due to its viability in acting as a payments system. It serves as an important service in lower value transactions. Litecoin can handle small-ticket transactions and not have to relay high fees.
What’s your thoughts on litecoin shooting up?