Litecoin, over the previous yr or so, has been regularly pushed out of the record of top-10 cash ranked by market cap. As anticipated, newer cash quickly gained traction on the charts.
Over the previous couple of months, the alt has stored a low profile, tempting the market with a possible breakout. Lastly, during the last three days, Litecoin registered a near 40% value leap.
Silver BTC following go well with
The principle driver behind this spike was the bullish momentum projected by the broader market. Nonetheless, different components can also’t be dominated out. As mega-cap cash like Bitcoin and Ethereum noticed double-digit features, hitting new all-time highs, LTC following go well with didn’t come as a shock.
Notably, LTC’s correlation to Bitcoin’s new ATHs performed an essential function within the latest value uptick. Curiously, whereas the value soared, the correlation to BTC noticed a good uptick too.
What’s extra, the 14th-ranked coin’s fundamentals look robust.
Nonetheless, its annualized value volatility held decrease values and offered a downtrend, alongside value features. This made LTC extra regular towards dramatic value fluctuations.
In actual fact, Litecoin has been charting respectable one-month and three-month ROIs v. USD of fifty% and 62%, respectively.
Moreover, Litecoin’s Sharpe ratio too held excessive values. With a determine of 5.81, it was even increased than BTC’s (4.6 at press time). So, the query remains- Might this imply that LTC is a safer wager?
Inflation hedge?
To not neglect, Litecoin’s gradual value momentum and relatively decrease returns have been broadly criticized available in the market. Nonetheless, its legacy stays robust as LTC is usually seen as a possible commerce-oriented token.
U.S. inflation hit a 30-year excessive in October. On this context, it appeared, older and safer cash like LTC remained a great wager towards inflation. Notably, prior to now, Litecoin has risen in response to adverse views about fiat currencies as buyers search for asset courses to battle inflation fears.
This time although,0 Litecoin isn’t simply an inflation hedge. In actual fact, its value is anticipated to reap increased features for HODLers.
As highlighted in a earlier article, LTC might simply breach the $500-mark. The identical may be confirmed by wanting on the aSOPR for LTC. Right here, the metric famous ATH values after 9 Might. Additional, the identical implied that the cash moved on common have been promoting at a revenue.
Supply: Glassnode
Furthermore, the uptick in aSOPR seemed much like the 2017 uptick. Thereby, a manifestation of the 2017 rally, or in lifelike phrases, a transfer above $500, appears very probably.
Nonetheless, regardless of the rise in value, retail euphoria remains to be missing. A push from retail consumers would additional verify the rally. For now, LTC’s fundamentals look robust. And, if the bigger market features proceed, LTC’s prospects of rallying would additional strengthen.
