Litecoin (LTC), promoted as the silver to Bitcoin’s gold, has risen dramatically over the last few weeks, start the new year at around $30 and reaching nearly $60 yesterday. This doubling in price comes at the heels of an Ethereum (ETH) rally which ended near the end of February.
Currently, trading at around $57, Litecoin has overtaken EOS to become the fourth largest cryptocurrency in terms of market capital. The question is, what is fueling this price surge, and can it last?
#1. Litecoin’s Upcoming Block Reward Halving
Many are citing Litecoin’s upcoming block reward halving as one of the reasons behind the surge. Starting sometime in the first week of August 2019, LTC block reward will be reduced from 25 to 12.5 (half). The reason why this can result in a price surge is that after the halving, the supply of LTC will drop, and general market dynamics indicate scarcity leads to price appreciation.
However, given how the halving is still about 150 days or so ahead of us, it is unlikely to be the main reason behind the recent LTC price rise.
2. Litecoin and MimbleWimble (Beam partnership)