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Litecoin Volume Buffs Up. What’s Next?

  • Thomas Hughes
    ⭐ Features

    According to Bitinfocharts, more than $1.1 billion worth of LTC was transacted over the Litecoin network on Nov. 30


Litecoin Volume Buffs Up. What’s Next?
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According to Bitinfocharts, more than $1.1 billion worth of LTC was transacted over the Litecoin network on Nov. 30, but the volume started to climb even before that (almost $600 million worth of LTC transacted on Nov. 29).

Considering that the average daily volume for Litecoin is much lower, we can safely assume we are dealing with a whale or group of whales moving their assets. And if we were to speculate, we could say that an entity like the Bakkt exchange is preparing for their early 2019 launch.


Chart Analysis – LTC/USD

Chart Analysis – LTC/USD

Litecoin gave up the gains made a few days ago and dropped after reaching a high at 37 against the US dollar, disappointing most of its fans who were expecting a stronger recovery towards $40.

Currently, the pair has established support on the bullish trend line seen on the chart above and is trading around 32, but below the 2 Exponential Moving Averages, which are still crossed bearish (i.e. 50 EMA-red is above 20 EMA-blue).

The pair has printed a higher low, which is a bullish sign but also a lower high, which is a bearish sign and all these paints a blurry picture, like most other cryptocurrencies, which are showing the same behaviour. A breakout above or below the triangle formation seen on the chart will most likely trigger an extended move.

Support zone: bullish trend line followed by 27 – 28 area

Resistance zone: bearish trend line

Most likely scenario: move outside the triangle; we slightly favour the long side because the downtrend is overextended

Alternate scenario: tight range, move outside triangle without momentum or clear direction

Cover image via u.today
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Question of the Day: Can Stablecoins Accelerate Cryptocurrency Adoption?

  • Yuri Molchan
    ⭐ Features

    Stablecoins show hardly any volatility compared to Bitcoin and altcoins, many are hoping that they will be able to bridge new crypto economy and regular fiat money


Question of the Day: Can Stablecoins Accelerate Cryptocurrency Adoption?
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Contents

Bitcoin, the father cryptocurrency, emerged in hope that it will remove all intermediaries in electronic commerce that cut off their share of payments. BTC was perceived as a P2P way to replace fiat cash in an electronic format, which would enable one party to pay another without any financial institution or payment platform which would demand its share of a transaction as a reward for its services.

What is wrong with Bitcoin

For quite a while Bitcoin was performing the way the crypto community expected. But the situation changed later – BTC rate became weaker, thus bringing down its financial and economic reliability, when it gets to be used as a regular means of payment.


You cannot have a currency that would cost like a British castle today, a gram of gold – tomorrow and a pack of French fries the day after.

At that point practical fintech minds came up with an idea of creating something which would become a breakthrough in the universe of crypto – a so-called stablecoin.

Will stablecoins solve the volatility problem?

Technically, stablecoins are protected from the volatility roller-coaster that Bitcoin and other cryptos love to ride. They are programmed to keep their prices stable and investors now are largely attracted to this new type of digital assets.

Stablecoin does not show any volatility in its monetary value, since it has a fixed connection to an asset it is pegged to. The major goal of using stablecoins is taking the best from decentralized crypto coins and combining it with a constant value. Thanks to it, stablecoins can be used as a reliable means of trade.

Asset-pegged stablecoins

Asset-backed ones get their value from an asset as can be understood from the name. An asset provides the necessary value to a coin, as well as the necessary legitimacy.

A great example of an asset-pegged stablecoin is Tether (USDT). In spite of a series of scandals at the end of last year, it remains the most popular stablecoin in the crypto market.

Recently, it has partnered with the Tron Foundation to launch a Tron-based stablecoin.

Other examples are TrueUSD (TUSD), USD Coin (USDC), the Gemini Dollar (GUSD), and the Paxos Standard (PAX). They are all pegged to the USD.

Crypto-backed stablecoins

Some digital coins work in a similar way to fiat-backed ones, however, they are pegged to collateral crypto. That means that crypto assets that ensure the value of such stablecoins are stored in a wallet similar to escrow.

A good example of a crypto-pegged token is Maker, which is ranked 16 on CMC.

Algorithmic stablecoins

Even though, stablecoin can be interesting at first thought but the way they are built goes against the principle of decentralization that crypto coins have as a foundation. Thus, many crypto fans and evangelists are positive that stablecoins must be linked towards not a centralized asset but a computer algorithm which takes value from a balance between supply and demand.

Basis is now considered the most promising algorithmic stablecoin of all.

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Can stablecoin ensure smooth future for the crypto industry?

The primary goal of all crypto assets was and remains to come up with virtual asset that would be liquid enough and not vulnerable to market volatility. From this point of view, stablecoins are a dream of all crypto fans and evangelists of a decentralized economy.

Apart from the potential to conduct crypto transactions smoothly, experts believe it can bridge the two worlds – fiat and crypto, bringing them a mutually beneficial coexistence. However, that may take time.

Cover image via u.today
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