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Why Did Litecoin Hit $50 For the First Time in August?

Why Did Litecoin Hit $50 For the First Time in August?

Litecoin price surpassed the $50 mark for the 1st time in Aug due to two major factors: compatibility with Bitcoin because of this of Segregated Experience (SegWit) activation and its hedge-like characteristics to Bitcoin Cash (BCH).

On September 21, Cryptocoinsnews reported that prominent Bitcoin analyst and investor Tuur Demeester described Litecoin as a real Bitcoin hedge because of its SegWit-enabled network and transactions. He explained that the sell-off of BCH was likely to cause Litecoin cost to spike.

“If BCH pump fails, money could roll into LTC, it being a genuine Bitcoin (BTC) hedge. I just invested some BCH income into LTC. With real ‘Bitcoin hedge’ I suggest [that] Litecoin provides SegWit and it will most likely mix various other slicing edge tech ahead of BTC,” Demeester said at the period.

Although it is challenging to wholly attribute the surge in Litecoin price to the recent sell-off of BCH, the timeline matched the analysis of Demeester. During the week when BCH fell from over $1,000 to $640, Litecoin cost attained brand-new all-time heights, breaking through the $50 tag for the initial time since Come July 1st.

It is likely that the sell-off of BCH attracted investors in Southerly Korea and China because they have been BCH’s two largest markets and the demand for Litecoin has been increasing at a fast rate in both marketplaces. Upon the short-term sell-off of BCH, traders shifted to Litecoin, Ethereum and Bitcoin in the Chinese and Sth Korean markets.

 

litecoin prices high

 

Another primary factor that has led to a short-term surge in Litecoin price is definitely the activation of SegWit in the Bitcoin network. The Bitcoin Core development team’s SegWit, which works a purchase malleability fix and scaling alternative, was followed by Litecoin in September and the integration of SegWit by Litecoin ultimately prompted the Bitcoin sector and community to integrate SegWit in the main Bitcoin network.

With SegWit live in both Litecoin and Bitcoin networks, cross-network exchanges can be made possible through cross-blockchain channels. Charlie Lee, the originator of Litecoin, and the advancement team behind Lightning, a SegWit-based Bitcoin micropayments solution, emphasized the importance of a Litecoin-to-Bitcoin Segwit-enabled purchase exchanges in latest statements.

“Version 0.3 of LND added a Litecoin operating mode as a step towards multi-chain Lightning Network for cross-chain atomic exchanges. I’m functioning with [Litecoin Base Directors] Xinxi Wang and Franklyn Richards today to test out Lightning on Litecoin mainnet. Any actual litecoins lost will end up being worthy of it,” Lee stated.

More to that, the formal update launch of Lightning Network version 0.3 revealed that exchnages between Litecoin and bitcoin will be facilitated in convenience, allowing cross-network exchanges seamlessly.

“In this discharge, we’ve added support for a toggle-able Litecoin chain and finances backend. This means that lnd is definitely today capable for quickly switching back and forth between the Bitcoin and Litecoin chains. This can be very thrilling as the code scaffolding put in place to make this switch seamless also lays some important foot work for the multi-chain lnd operating mode that is certainly under development,” the document examiner.

Litecoin’s cross-network connection with Bitcoin, a $72 billion blockchain network, is normally performing a vital function in sustaining the up impetus of Litecoin price.

 

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