Why the price of Litecoin went up so much this year?
Litecoin is a fork of Bitcoin. The oldest one, created in 2011. A number of times it was referred to as "silver to Bitcoin's gold" and its trends were closely related to BTC. 2018 had proven terrible for LTC, which price went from $300 levels to the $20 bottom. Majority of mass media and many crypto enthusiasts called this coin a failure and declared that "Litecoin is dead".
So far, investing in Litecoin in 2019 had proven to be one of the best investments in cryptocurrencies - by the time we are writing this article, its price already went up by 600% from the bottom.
Why the Litecoin price went up so far in 2019?
In 2018 LTC was called by many a failed cryptocurrency because there had been no clear roadmap for improving its functionality. This, combined with the cryptocurrency bear market in 2018 made the LTC drop that much.
But ex-Google employee Charlie Lee and the developers of this cryptocurrencies listened to the criticism and addressed it.
From a public image perspective, the Litecoin Foundation started to work on the Litecoin brand to be more independent - they became an official cryptocurrency partner of MMA UFC federation and bought 10% of shares in German WEG Bank to widen adoption of Litecoin for traditional banking purposes.
Another factor which helped LTC is the adoption of the Lightning Network - which makes an additional transfer layer, which enables users to open a number of transactions outside the main blockchain and then record them as a single one. This means that there are no fees (or minimum which is physically possible) for transfers, and transactions themselves are practically instant.
Another booster for the Litecoin price is (strongly supported by members of the LTC foundation) possible introduction of additional privacy features (Confidential transaction) to LTC with collaboration with a Beam developer announced in January this year.
Last, but not least - Litecoin halving is most likely a crucial factor, which has probably the biggest influence on the price of LTC. Why is it so? Halving in general means 50% of reduction in a block reward. Right now, each successful miner gets 25 LTC each 150 seconds reward. After 8th of August 2019 (estimated date of halving), the reward will go down do 12,5 blocks during same time period. With supply being limited and demand staying on similar level (or even rising, as the bear market is over!) in general we can see that the price goes up.
History seems to support such statement - in 2015, when the first halving took place, the price of LTC went up by 700% a month ago the halving. Considering that the bull market has begun this year, the history may well repeat itself.
To sum up, Litecoin future price (and in general its own future) seem to be optimistic. With Lightning Network it can finally become a usable mean of payment in shops. Possible privacy updates and upcoming can as well increase its popularity and influence the price of Litecoin. Finally, its creators managed to step away from the shadow of Bitcoin and focused upon building its own name and step by step distinguishing its functions from its big brother.