Why is the premium rate of Litecoin so high (why has Litecoin failed to rise recently)
Why is the premium rate of Litecoin so high Litecoin is one of the Cryptocurrency with the highest listed value in the market at present, and its total circulation exceeds 1 million. Although its price has been fluctuating recently, it has not attracted people’s attention. So why is the premium rate so high? Because it is the most prominent form of mainstream digital assets such as Bitcoin. According to CoinMarketCap, since May, the price of Litecoin has risen from $3 to nearly $9. Although it fell by more than 90% when it reached the highest level in history on April 1, Litecoin still maintained an increase of more than 50%
Litecoin is an ERC-20 token based on the Ethereum blockchain, which is highly scalable, easy to use and decentralized. Unlike most other Cryptocurrency, the token is designed as an investment vehicle similar to the stock market. Due to its network effect (i.e. by incentivizing liquidity in the market), it enables traders to achieve higher returns. This mechanism can prevent users from using their funds to purchase and sell Cryptocurrency, which means they can exchange their assets without affecting their value. Therefore, even in extreme market conditions, LTC/USDT also has good price stability: if the premium of BTC/BNB is as high as 60%, its price may be 30% -40% higher than the premium of ETH/LTC
The total supply of Litecoin is just over 300 trillion, while the total output of Litecoin is only 21 million per day. According to today’s calculations, approximately $25 billion enters circulation each year, half of which comes from mining incentives; The other half comes from block subsidies and operating expenses, both of which indicate the market demand for Litecoin
In order to better understand these situations, let’s first look at some basic principles:
1. In the world of Cryptocurrency, ownership is publicly visible. Anyone can view or modify their holding records and verify them at any time. For example, when a person has a wallet address and wants to transfer the money to another address, their entire asset will automatically be converted into Bitcoin
2. Everyone must believe that the encrypted assets they hold must be meaningful. For example, if you put a Bitcoin into a specific number of wallets and it is destroyed, there will be no run on it. On the contrary, when investors store their money in cold storage, it immediately disappears. So you can assume that you have enough people to buy Bitcoin instead of selling it, and there won’t be any selling pressure for a period of time. In other words, as long as you control your encrypted assets, you can continue to make profits, whether you are willing to do so or not. In addition, if you want to earn interest on your encrypted assets, you need to have a “custody” service to provide assistance and eliminate risks
Why can’t Litecoin rise recently
According to CCN, why can’t Litecoin rise? According to data analysis by CoinMarketCap, LTC prices have fallen by about 30% in the past week since early August. Nevertheless, it still maintains a strong fundamental momentum. But if the price drops below the current level, there will be a very significant selling pressure – at least one of the situations that have occurred in the recent bear market. Recently, there has been another significant pullback in Bitcoin, which may indicate some bearish voices in the market.
This article and pictures are from the Internet and do not represent Fpips's position. If you infringe, please contact us to delete:https://www.fpips.com/21934/
It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.
Recommended articles
-
What to Enter for SC Mining Address (How to Mine SCDS Now)
What to enter for SC mining address? Many project teams have started giving mini
-
Nexus Mutual pays out $5 million in claims due to DeFi platforms’ bankruptcy
It is reported that DeFi insurance provider Nexus Mutual has paid about US $5 million in claims due to the bankruptcy of FTX and BlockFi, and is expected to pa…
-
BAYC Opens “Summoning” for Eligible Sewer Pass Holders: A Great Opportunity for NFT Collectors
On March 16th, BAYC announced on official Twitter that “Summoning” has officially opened and is open to all eligible Sewer Pass holders. BAYC: “Summoning” has officially opened Analysis based on this information:Bored Ape Yacht Club (BAYC) announced on March 16th, 2022, that its “Summoning” feature was officially available for eligible Sewer Pass holders. This is a great opportunity for NFT collectors who own a Sewer Pass to participate in Summoning, an innovative new feature that allows users to summon different characters and creatures to enhance their digital art collections. BAYC is one of the most popular and respected NFT collections in the industry. The Bored Ape Yacht Club was founded in April 2021 by a group of artists and developers who wanted to create a community of like-minded people who appreciate digital art and blockchain technology. Today, it is one of the largest and most successful NFT collections, with a total market cap of over $3 billion. Sewer Pass is…
-
What is Bitcoin open-source code
What is Bitcoin open-source code? In 2017, the Bitcoin team released a Open-source software called “Bitcoin Protocol”. The project was released by Peter Todd, a Bitcoin Core developer and member of Bitcoin Core community, in early 2019, with the purpose of applying blockchain technology to Cryptocurrency. According to the description of the project, “the purpose of this invention is to enable people to access and use these decentralized financial services.” According to the introduction, “Open-source software” refers to Open-source software written by computers. Anyone can test it and run it as a system, or use it to create various types of services. “Open-source software” also has many other functions: such as consensus mechanism, which can be used to verify transactions and store private keys – proof of ownership is open source and can be regarded as an asset (token) Is Bitcoin open sourceEditor’s note: This article is from BlockBeats (ID: 0x29b5F, reprinted with authorization by Daily Planet) In the past…
-
Cryptocurrency Payment Provider Digital Treasures Center Changes Name to dtcpay
It is reported that the cryptocurrency payment provider Digital Treasures Center, which holds the MPI license of the Monetary Authority of Singapore (MAS), announced to change its
-
The Rise of CryptoPunk and Its Impact on the Blockchain Industry
7:00-12:00 Keyword: CryptoPunk, ARB, dwpbank, zkSync
Summary of important developments at noon on March 25th
In recent years, the world of blockchain technology has continued to ex -
Musk seeks to end a $258 billion “dog money” lawsuit
According to reports, on March 31, Musk requested a US judge to dismiss a $258 billion lawsuit. Musk\’s lawyer said that investors have never explained how Musk intends to deceive o
-
Meta Merge Enters NFT Market: A Revolutionary Step for Ultraverse Gaming
On April 17th, it was reported that the lightweight leisure mobile game Meta Merge incubated by the metaverse gaming platform Ulfiverse entered the NFT market, casting 107483 NFTs
-
UK Prioritizes the Risk Management of Silicon Valley Banks
It is reported that the British Chancellor of the Exchequer said that the British government regarded the issue of Silicon Valley banks as a “high priority”. In addition, the UK Ministry of Finance said, “We are stepping up the development of solutions to avoid or minimize the losses caused by the failure of Silicon Valley Bank. We will immediately put forward plans to ensure that the short-term operation and cash flow needs of customers of Silicon Valley Bank’s UK subsidiaries can be met.” The British Chancellor of the Exchequer: The British government regards the banking issue in Silicon Valley as a “high priority” Analysis based on this information:The recent report highlights the increasing concern of the UK government towards the risk management of Silicon Valley Bank. The statement of the British Chancellor of the Exchequer regarding the issue underscores the importance of addressing the possible losses and financial instability that could arise from the failure of the bank. As a…
-
Bitzlato already supports users to extract 50% of Bitcoin
On March 22, it was reported that users of the Russian crypto exchange Bitzlato can now withdraw some funds. A Bitzlato spokesperson said that account holders can withdraw up to 50
-
Alecta Sells All Shares in First Republic Bank in a Massive Loss of $728 million
According to reports, Alecta, Sweden\’s largest pension fund, sold all its shares in First Republic Bank at a loss of $728 million.
Sweden\’s largest pension fund sells all First Rep -
Clique Launches New Function for Discord Privacy Protection on Optimism
It is reported that Clique, the identity oracle project that connects Web2 and Web3, launched a new function for the privacy protection of Discord on the Optim…
-
Federal Reserve 2022 Audited Financial Report: Remittances to Ministry of Finance Predicted to Reach Billions
It is reported that the Federal Reserve issued its audited financial report for 2022. The financial report shows that remittances to the Ministry of Finance will reach $76 billion
-
Wallet Address 0x2eFB50 Transfers 213 Billion SHIBs to Coinbase and OKX
According to reports, according to data disclosed by Spot on Chain, wallet addresses starting with 0x2eFB50 have transferred 213 billion SHIBs to two major trading platforms, Coinb
-
MakerDAO Community Selects First Four Incubation Ecosystem Participants
According to reports, the MakerDAO community voted to select the first four incubation ecosystem participants based on the new Maker charter parameters: dewiz, Sidestream, Phoenix
-
TMON CEO and intermediary arrested for corruption related to Terra payment
On February 15, the South Korean prosecutor investigating the Terra/Luna crash arrested Mr. A, the former CEO of the country\’s e-commerce giant TMON, for accep…