FX.co ★ Five reasons for the sharp increase of litecoin

During the last week, litecoin showed a sharp growth, surging by a record-high 333%. Last Thursday, 7 December, the cryptocurrency grew in price by 38%; and on Sunday, it increased by already 29%. On Monday, 11 December, it was followed by a meteoric rise of 73%. At the moment, litecoin costs more than $300. Experts tried to figure out what was behind that incredible boom.

Bitcion appreciation and the beginning of futures trading

At present, there is a remarkable activity in the market of bitcoin thai is largely due to the start of futures trading. Ex[erts are certain that this fact cannot but influence litecoin and other cryptocurrencies. Such an activity leads to increased price of transactions and to the network congestion, so many users prefer to deal with litecoin. Analysts consider that litecoin is becoming more attractive alternative for trading due to high speed and lower transaction costs.

The high inflow of users to Coinbase

The number of users of the Coinbase cruptocurrency platform reaches around 100 thousand per a day. Coinbase supports three popular cryptocurrencies: bitcoin, ethereum, and litecoin. According to experts, the connection between bitcoin and litecoin could influence on the inflow of users to the popular cryptoexchange.

Customers become more attentive to litecoin

Many users begin working on the cryptomarket with bitcoin and websites like Coinbase. Cryptoexchange, as already mentioned, supports litecoin. The transaction rate and low tariffs in the network of litecoin are very important for new users. Litecoin provides a unique benefit in speed that is highly appreciated by market players.

Casual customer

Some customers of litecoin came to Coinbase by chance. They entered the market of digital currencies in a wave of cryptocurrency boom, for fear of losing benefit. Experts warn that such irrational behaviour may lead to disappointment. Casual customers choose speed and comfort, not the detailed study of all market opportunities. Eventually, they can buy a cryptocurrency at a maximum and lose profit.

The importance of social networks and mass media

Charlie Lee, the creator of litecoin, has recently appeared more frequently in mass media. The press, actively cooperating with him, began to cover events related to litecoin. As a result, the public attention turned out to be focused on that cryptocurrency. The founder of litecoin warned buyers of the coming "bearish" trends of the market, and of the possible cost-cutting of litecoin to $20. Howevr, experts believe that before the market declines, litecoin is set to recover significantly.