At the beginning of 2017, price of Litecoin was $4.33 but the picture is quite different at present. So, what is the reason Litecoin has become so popular this year? This is the topic we will explore in greater depth in the following sections.
Why Litecoin is growing exponentially?
There are several reasons which are fueling this exponential growth. Let us delve into the details here.
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Reason #1: Scope for Growth
Fact #1: This year Litecoin has seen an increase of almost 4,000%
The very first reason for Litecoin’s popularity is that there is room for growth due to the fact that about 60% of its total coin volume of 84 million is in circulation.
“Don’t worry. I’m not quitting Litecoin,” he wrote, then later added, “As you can see, some people even think I’m pumping Bcash [Bitcoin Cash] for my personal benefit. It seems like I just can’t win.” – Charlie Lee, Founder, Litecoin
On the other hand, out of a total of 21 million Bitcoins, there are almost 76% are already in circulation. Thus, Litecoin has more coins available and there is more scope for market capitalization.
However, mining profitability is still far less in comparison to Bitcoin since Bitcoin has $3/day for a single transaction hash while it is less than $1 for Litecoin.
Reason #2: Similar Structure as Bitcoin’s
Fact #2: Litecoin ranks among top 4 cryptocurrencies in terms of market capitalization