The market was in a long bearish stretch until all the top assets located their short bottom in December last year. was one among them.
Price Performance Since December 2018 | Source: CMC
On December 12, the ’s dollar valuation touched its yearly low at $23.01. And since then, the pair has recovered surged close to 156-percent, now at a relatively impressive rate of $59, with recent highs going as up as $61.54. One could say that so far followed the overall market sentiment. While it corrected higher, other top coins, including , , , and , also noted similar upside moves. Nevertheless, LTC surged on one more account as well: network activity.
Litecoin Hashrate Rising
As noted by Gregory Rocco, the head strategist at crypto-economy firm Alpine, ’s hashrate is on the rise since December. The ’s power consumption rate was shy of 150 trillion hash per second (TH/s) in December. But as of now, it has jumped close to 270 TH/s, indicating that more miners have joined the network ever since the price started recovering.
Hashrate on the Rise | Source: Gregory Rocco, Alpine
For starters, a higher hashrate indicates a more secure network. It means that any malicious actor planning to attack the would need to spend ample amounts of money to match the hashrate. Therefore, the attack would become impractical. Fundamentally, it makes LTC a secure , which allows its LTC to claim a bullish scenario.
The real flippening is and hashrate.
— Rocco (@Obstropolos)
The correlation between the rising hashrate and surging prices is out in the open. Miners are visibly making decent profits off their investments, thereby contributing more computing power to strengthen the network, and improving the bullish fundamentals on a whole. Should the hashrate drop, it could flip the scenario upside down.
[Note: Against what Rocco’s chart explains, it would be ill to compare ’s falling hashrate with ’s rising one. Both of the projects use different algorithms at their cores. So, their fundamentals vary naturally.]
External Bullish Factors
’s upside correction received a push from the founder Charlie Lee’s announcement this January. The former executive said that they were planning to experiment with privacy, one of the most leading trends in the market. He wrote on January 28:
“Fungibility is the only property of sound money that is missing from & . Now that the scaling debate is behind us, the next battleground will be on fungibility and privacy. I am now focused on making more fungible by adding Confidential Transactions.”
The ’s dollar-valuation has surged more than 90-percent since Lee’s announcement – from $30.84 to $59. The lead developer tweeted on Feb 11 that they were going to write up a Improvement Proposal for community feedback. Once approved, they will go ahead towards developing a privacy-centric .
We still have a lot of work ahead of us. Need to make sure the tech is solid and come up with a plan to test everything and safely upgrade the network. When we have a solid plan, we will write up a Improvement Proposal (LIP) for the community to critique.
— Charlie Lee [LTC⚡] (@SatoshiLite)
Published at Tue, 26 Mar 2019 12:14:40 +0000
