The gradual acceptance of cryptocurrencies by financial institutions, paired with both retail and institutional interest, has paved the path for litecoin’s resurgence in 2021.
Bull Market takes Litecoin to the Next Resistance Level
Litecoin had a difficult start. Charlie Lee, the project’s founder, allegedly sold his whole bag of LTC in late 2017. Lee wanted “to focus on the project’s growth.” Lee drew a lot of flak for his choice, which was understandable.
The founder, who goes by the Twitter name Satoshilite (Satoshi Nakamoto, the creator of bitcoin), didn’t hold back, repeating a year later.
However, LTC had a 5,000 percent increase in December 2017. However, the market correction in 2018 returned it to its pre-jump level of roughly $26.
Large institutions are gradually warming up to cryptocurrencies. This marks a dramatic shift in attitude since the last bitcoin bubble in 2017. Paypal announced a partnership with Paxos, a New York-based trust corporation, in October of last year. This allows customers to trade bitcoin straight from their Paypal accounts. Square Inc, a financial services and payment firm run by Twitter CEO Jack Dorsey, bought $50 million in bitcoin shortly after. This results in a 10% gain for the company. Visa has released a litecoin (LTC)-only Visa card that may be used both online and physically in the United States.
This week, LTC is the 8th most valuable crypto asset, with a market capitalization of about $14 billion.
‘The Original Sin’
Retail investors have been benefiting from financial companies’ recent embrace. Since September, Litecoin has been on a tear, with increases of over 350 percent. Though it had been unable to break through an important barrier around $170 until recently. It has now done so and is riding the bull market to its next resistance level at $228.
Crypto assets like ethereum, bitcoin cash, and litecoin appear to be among the chosen altcoins that profit the most from all of these crypto adoptions. This results in a network effect. Furthermore, Cryptwerk lists over 2,200 businesses that accept LTC as payment.
Grayscale, the world’s largest crypto asset manager, just bought 6,987 litecoin. This boosts the total amount of Grayscale’s LTC assets under control to over $250 million. Institutional investments bolster a coin’s trajectory even more because they are the product of extensive study mixed with calculated, data-driven projections.
Lee’s “initial sin” came to an end over the weekend when David Schwartz, the project director of the Litecoin Foundation, made a public redemption for Lee in a tweet. He points out that Lee sold his LTC at an average value of $205, a value that has since been suppressed.
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