Many profitable altcoins have sprung up as a result of the burgeoning cryptocurrency market. The decentralized, transparent transactions of these virtual currencies, which are not controlled by any central authority, are enabled by blockchain technology. This industry is heating up, from Bitcoin (BTC) to Dogecoin (DOGE). Litecoin (LTC) is one of the cryptocurrencies that has gained traction among investors, despite the fact that the whole universe of digital currencies is complicated by nature.
LTC is a peer-to-peer cryptocurrency that allows rapid, near-zero-cost payments to anybody in the world. It was created by a software programmer named Charlie Lee in October 2011. The goal of the launch was to make the cryptocurrency accessible to the general public without requiring any special gear.
Litecoin has grown in popularity over the years because to cheaper transaction costs and quicker payouts than Bitcoin. Bitcoin is the most popular and biggest by market valuation. Litecoin generates new blocks every 2.5 minutes rather than every 10 minutes like Bitcoin. In addition, compared to 21 million Bitcoins, a total of 84 million Litecoins may be produced. Litecoin is now circulating on the market with 79 percent of its total capacity.
Litecoin is now the twelfth biggest cryptocurrency by market size,. It has a market worth of over $21 billion and a volume of more than $10 billion in the previous 24 hours. The coin’s price has gone from a low of $40.66 to a high of $412.96 over the last year. It is now trading at $328, down 15.3 percent in the previous 24 hours.
Cryptocurrencies continue to be viewed with suspicion by major international economies. Regulations for cryptocurrencies are also on the rise This is as Bitcoin and other altcoins increase in popularity and obtain institutional support.
Recent Moves in the Crypto Market
Tesla Inc. (TSLA) CEO Elon Musk suspended Bitcoin purchases after expressing worries about the rapidly expanding consumption of fossil fuels for Bitcoin mining and transactions. Companies with Bitcoin exposure plummeted. “We believe it has a bright future,” Musk added, “but it must not come at a high environmental cost.”
Musk’s approach is expected to have an impact on stock investors who are banking on cryptocurrency. Tesla’s announcement earlier this year was accepting it as payment functioned as a spark for the cryptocurrency market. It had purchased $1.5 billion in Bitcoin.
The cryptocurrency market has plummeted in the previous 24 hours, with all of the top 20 biggest assets by market size trading in the red. At the time of writing, Ethereum (ETH), Binance Coin (BNB), Dogecoin (DOGE), Ripple (XRP), and Bitcoin Cash (BCH), to mention a few, had all plummeted more than 10%.
NANO, SNX, and KSM were among the few currencies to have a 50%, 13%, and 11% boost in value during the last 24 hours.
The worldwide cryptocurrency industry is expected to be valued at more than $5,190.62 million by 2026. This is according to a Facts and Factors market research analysis released in April. The market values at $792.53 million in 2019. It has a projected compound annual growth rate (CAGR) of 30% from 2019 to 2026.
Companies with exposure to bitcoin pricing have also been hit by disgruntled investors as cryptocurrency values have fallen. Coinbase Global (COIN), for example, fell 4.8 percent in Wednesday’s extended trading session after finishing the day 6.4 percent down. COIN is a cryptocurrency exchange platform.
After the market closes on May 13, the firm will release its first-quarter earnings. Analysts predict the business will earn $3.07 per share on $1.814 billion in revenue.
Based on the belief that Coinbase is an “enabler of crypto innovation,” Oppenheimer analyst Owen Lau commenced coverage on the stock on May 11 with a Buy rating and a price objective of $434 (53 percent upside potential).
On May 5, Mizuho Securities analyst Dan Dolev reaffirmed the stock’s Hold rating and $315 price target (an 11% upside potential).
How Bitcoin Affects COIN
“FIS said that banks would be able to provide their clients the opportunity to purchase, sell, and store Bitcoin through their bank accounts,” Dolev added. This, in our opinion, contributes to the democratization and validation of Bitcoin. It is by allowing bank clients to purchase Bitcoin without the use of frequently unregulated FinTech applications. We feel that making Bitcoin accessible to everyone helps to legitimize the category. However, it also puts pressure on trading costs, which might hurt COIN.”
With a Moderate Buy average rating, the rest of Wall Street is cautiously bullish about the company. This is based on a total of 6 Buys and 3 Holds. The average analyst price objective of $435.33 suggests a potential upside of 53.5 percent from present levels. In addition, according to TipRanks statistics, financial bloggers are 63 percent bullish on COIN. This compares to an industry average of 68 percent.
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