Crypto markets are rallying today as traders reassess the risks of crypto asset management firm Genesis going under. Bitcoin (BTC) posted a 5% gain in the last 24 hours and traded above $16,000 after hitting its two-year low yesterday.
However, the rally does not mean that traders are ready to take reckless risks. The markets are now looking for stability, and they are turning to Litecoin (LTC). The digital asset dubbed “Digital Silver” has taken a huge leap of 28% over 24 hours.
The week has been great for Litecoin as well. The Bitcoin fork is up 37% over the last seven days. As the crypto markets were in turmoil, Litecoin was the biggest winner. The proof-of-work coin is now the world’s thirteenth-largest cryptocurrency by market capitalization.
The FTX collapse and the potential contagion from it are spreading mistrust toward centralized projects. Investment bank JPMorgan (NYSE:JPM) pointed out that the recent crypto collapses were all centralized entities: Three Arrows Capital, Terra-Luna, and FTX.
Moreover, tokens that are closely tied to certain companies are at a greater risk of contagion from FTX than decentralized coins. Litecoin, on the other hand, has all the features of a decentralized protocol.
Litecoin – Digital Silver and DOGE Relative
Litecoin is often referred to as “Digital Silver” due to its similarity to Bitcoin, which is known as “Digital Gold.”
Created in 2011 by developer Charlie Lee as a more scalable alternative to Bitcoin, Litecoin also uses a proof of work algorithm.
The difference is that transactions on the Litecoin network are faster and cheaper. Moreover, a recent network upgrade allows users to conceal their transaction data, which greatly improves the privacy of transactions.
Litecoin’s founder is still working on the project. However, he sold all his holdings in Litecoin in 2017, citing conflicts of interest.
In 2013, Billy Marcus forked Litecoin to create the meme-crypto Dogecoin. Litecoin and Dogecoin are similar in many regards, but there are some major differences. Litecoin supply is capped at 84 million. The supply of Dogecoin is uncapped.
On the Flipside
- Litecoin’s PoW protocol could put it in the crosshairs of regulators aiming to reduce the carbon footprint of digital currencies.
Why You Should Care
The Litecoin rally shows a shift in market sentiment away from “moonshots” and towards more stable and reliable projects.
Learn about the Litecoin upgrade:
Litecoin Activates the MimbleWimble (MWEB) Upgrade, LTC Surges
Exchanges delist Litecoin after privacy-focused upgrade:
Crypto Flipsider News – Exchanges Delist Litecoin