At the time of writing this post, Litecoin is going for $321.20. In a span of 5 days, its price has grown by an unprecedented 333%. Of this growth, 38% was gained in a span of 9 hours! This feat has shattered all growth records in the history of the cryptocurrency market.
As much as it is good news for those who had invested in the coin, it has equally left many wondering about this sudden surge. The million-dollar question in everyone's lips is, why is Litecoin price going up? Here are a few possibilities for the price increase.
Coinbase is experiencing an influx of users
Coinbase is a popular cryptocurrency brokerage app. In its recent statistics, it is registering 100,000 users each day. Since it supports three of the top coins i.e. Bitcoin, Litecoin and Ethereum, there is a general view that demand is pushing the prices up and Litecoin is a beneficiary of this influx.
Spillover from Bitcoin growth
On December 10th, Bitcoin future trading was launched. That has seen Bitcoin price, which was already on an increasing spiral, gather more momentum for growth. For quite some time now, Bitcoin and Litecoin have existed in a mutual relationship. It is therefore a solid conclusion that Litecoin is benefitting from the increased activity on Bitcoin's front. With the downtime being experienced with the scramble for Bitcoin, many customers are finding an easy consolation in Litecoin.
Fear of missing out among buyers
There is a crypto-craze happening right now Those who are not in it are afraid of missing out This explains the increase in buying and the surge in new entrants. With Bitcoin being off limits for most buyers, Litecoin presents an easy landing pad even for the inexperienced individuals. This is in turn drives up the numbers and the only way for the price to go is up.
Will this Litecoin growth last?
Just like its predecessors, this is a bubble with an elasticity limit and it could burst anytime. But for now, Litecoin will remain at the center of action for as long demand and supply forces play in its favor.