Erratic price swings add to LiteCoin’s challenges as founder Charlie Lee continues attempts for a LiteCoin payments system.
- LiteCoin price swings become more erratic
- Market cap loses over 10% in under 12 hours
- LTC adoption as a payment system remains sluggish
LiteCoin (LTC) appears to be struggling to achieve its goals of adoption as a payment system. Even though that is a reality LTC has still shown price resilience. The cost of that resilience has been quite erratic, harming confidence in LTC’s viability as a genuine transactional medium.
LTC began trading the week strongly at a resurgent US$187.34 shortly before recording a week-high price of US$195.23 on 22 January 2018, according to data released by CoinMarketCap.
Soon after that the price of LTC dropped sharply to a weekly low of US$165.73, which represents a steep drop of 15.1% in as little as twelve hours. This a problem for a cryptocurrency still trying to develop a workable system of payments.
After rebounding from the trough LTC has traded in an erratic price range varying by up to 10%. Since the trough LTC has recorde price swings in a range from as high as US$186 to as low as US$167.50.
Even with subdued trade towards the end of the week LTC has repaired its lost ground to close out the week at US$192.69 as at the time of writing.
LTC market capitalisation recorded a 10% drop in market cap alongside its erratic price movements. Starting the week at a steady US$10.2 billion the drop in market cap was sharp, moving as low as US$9.09 billion dollars in twelve hours.
Standing at US$10.5 billion the LTC market has regained its position from early in the week but with damage done to confidence.
24-hour trading volume in LTC has ebbed and flowed with the erratic movements in price increasing strongly after dips almost shoring up the LTC price.
Beginning the week at US$459 million that number jacked up to a 23 January high of US$528 million. After that high, trading volume settled at a range between US$410 million and US$ 360 million.
Closing out the week LTC’s trading volume has registered anywhere in between US$350 million and US$285 million and there appear to upward pressure on that number as at the time of writing.
As has been reported in previous weekly analyses, problems of adoption, rising transaction fees have placed question marks over the long-term viability of LiteCoin as a viable means of exchange.
Adding to those problems LTC appears to be losing its strongest quality of a relatively stable price.
This means there are now three problems for LTC. First, LTC is struggling to be adopted as money; second, the cost of LTC transactions are uncertain and may increase in time; and third, payments will be made harder if price instability continues.
Charlie Lee, founder of LiteCoin, has been active on social media trying to garner support for LTC as money by lobbying individuals to accept LTC as money for use in business transactions.
Lee sold all his LTC in late December at what appears to have been a peak in prices.
This information should not be interpreted as an endorsement of cryptocurrencies or a recommendation to invest. Historic performance is no guarantee of future returns. As an investment class, cryptocurrencies are speculative investments and investing in cryptocurrencies involves significant risks – they are highly volatile, vulnerable to hacking and capital loss and sensitive to secondary activity. Before investing you should obtain advice and decide whether the potential return outweighs the risks.