Cryptocurrency markets are rallying today as traders re-evaluate the risk of a crypto asset management company Genesis under. bitcoin (BTC) It posted a 5% gain in the last 24 hours and was trading above $16,000 after hitting a two-year low yesterday.
However, the rise does not mean that traders are willing to take reckless risks. The markets are now looking for stability, and are turning to Litecoin (LTC). Dubbed Digital Silver, the digital asset has jumped 28% over the past 24 hours.
It was a great week for Litecoin as well. Bitcoin fork lifted 37% during the past seven days. As the cryptocurrency markets were in turmoil, Litecoin was the big winner. The Proof-of-Work coin is now the 13th cryptocurrency in the world by market cap.
The collapse of FTX and possible infection from it spread distrust towards mainframe projects. JPMorgan investment bank pointed out That the recent crypto crashes were all centralized entities: Three Arrows Capital, Terra-Luna, and FTX.
Moreover, tokens that are closely associated with certain companies are at greater risk of infection from FTX than decentralized currencies. On the other hand, Litecoin has all the features of a decentralized protocol.
Litecoin – digital silver and its relative DOGE
Litecoin is often referred to as “Digital Silver” due to its similarity to Bitcoin, which is otherwise known as “Digital Gold”.
Created in 2011 by developer Charlie Lee as a more scalable alternative to Bitcoin, Litecoin also uses a proof of work algorithm.
The difference is that transactions on the Litecoin network are faster and cheaper. Moreover, recently network upgrade It allows users to hide their transaction data, which greatly improves transaction privacy.
The Litecoin founder is still working on the project. However, he sold all of his Litecoin holdings in 2017, citing conflicts of interest.
In 2013, Billy Marcus forked Litecoin to create the meme-crypto Dogecoin. Litecoin and Dogecoin are similar in many respects, but there are some key differences. Litecoin supply is set at 84 million. The supply of Dogecoin is unlimited.
Litecoin’s rally shows a shift in market sentiment away from “first shots” and towards more stable and reliable projects.