Litecoin prices have more than doubled since July. (Photo by Chesnot / Getty Images)
Litecoin prices have risen lately, climbing to their highest level since mid-May, as the digital currency network continues to benefit from growing activity.
The cryptocurrency, which was originally created as a hard fork of the digital sibling Bitcoin, rose to $ 229.42 around 11:00 a.m. EDT, according to the numbers from CoinDesk.
At that point, the cryptocurrency, which is similar to Bitcoin but differs in some fundamental ways, including block time and tokenomics, was trading at its highest level since May 19, additional CoinDesk data shows.
In addition, it had more than doubled from its recent low of $ 104.09, a price point it hit on July 20. Since then, the digital asset has followed a broad upward trend.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
The fundamentals of the Litecoin network have also improved in recent months.
The number of transactions per second, active addresses and new addresses has increased in recent months, according to Glassnode.
The network’s hash rate has also increased in recent months, nearly doubling from 170 terahashes (TH / s) in late June to 321.8 TH / s at the time of this writing, BitInfoCharts data shows.
Relationship with bitcoin
Bitcoin, whose price movements often have a strong correlation with that of Litecoin, has also been trending up in recent weeks and has increased significantly in value since reaching a local low on July 20, as further CoinDesk figures show.
Since dropping to $ 29,306.77 that day, the world’s most famous digital currency has rebounded more than 70% to around $ 50,356.00 at the time of this writing.
John Iadeluca, founder and CEO of the multi-strategy fund Banz Capital, discussed the relationship between these two cryptocurrencies.
Litecoin is often viewed as the silver to Bitcoin’s gold, he pointed out, and trading sentiment often follows this adage.
“I think we are currently seeing that the two assets have historically shown a consistent, close correlation in price movements” since Litecoin was first adopted by traders.
“The market usually reacts very similarly to Litecoin versus Bitcoin in terms of price movement,” he noted.
“I think that’s what we see in the last Litecoin price hike last week.”
Disclosure: I own some Bitcoin, Bitcoin Cash, Litecoin, Ether and EOS.