Market Overview

Litecoin Price ‘Massively Discounted’: Cryptocurrency Analyst

Supporters of litecoin often tout the sixth-largest cryptocurrency as “silver to bitcoin’s digital gold,” but one cryptocurrency says it’s also a diamond in the rough. Writing in an eight-page report published on Tuesday, eToro senior market analyst Mati Greenspan argues that the litecoin price is trading at a “massive discount to what it should be worth.”

Greenspan bases this assessment and several technical and fundamental factors. On the technical side, he notes the importance of Litecoin, a Proof-of-Work (PoW) blockchain, being the dominant coin mined using the scrypt algorithm. As long as this remains the case, Litecoin will remain highly-resistant to 51 percent attacks since there is not enough surplus hashpower to mount an assault on its network.

He also lauds Litecoin’s developers for structuring the cryptocurrency as a complement to Bitcoin rather than a competitor, enabling LTC to tether itself to the flagship cryptocurrency by adopting innovations such as Segregated Witness (SegWit) and the Lightning Network (LN). Greenspan further argues that litecoin has achieved more widespread adoption than many of its peers with comparable or greater valuations. LTC, for instance, has more than double the daily active addresses (DAU) of bitcoin cash (BCH), the fourth-largest cryptocurrency with a market cap roughly three times the size of litecoin’s valuation

In fact, litecoin’s market cap to DAU ratio is among the lowest in the large-cap cryptocurrency index, suggesting that the litecoin price is discounted relative to the coin’s present level of adoption. Recent announcements, such as the Litecoin Foundation’s purchase of a 9.9 percent stake in German financial institution WEG Bank, could further bolster LTC’s rate of adoption.

Litecoin Price ‘Massively Discounted’: Cryptocurrency Analyst, CCN, Aug 2
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