Over the last week, Litecoin achieved growth in the order of 52%. Passing from $ 75 to nearly $ 115, with its market capitalization actually standing at $ 7,5 billion.
A growth which has naturally led analysts to ask themselves what are the factors that have led to what is considered by many to be a serious alternative to Bitcoin to be strengthened so impetuously.
Litecoin: the role of Litebringer
The first factor that could be behind what happened in the last few days is Litebringer. It is a fantasy RPG based on blockchain which allows players to exchange the loot accumulated during its phases into tokens.
If in September there was the boom in daily transactions on the Litecoin network thanks to its impulse, the same had however diminished over the following months. However, increasing on Thursday, the day in which the token gained 20%, from 58 thousand to 71 thousand.
The growth of crypto is generalized
The other growth factor is considered to be the positive moment recently recorded by the whole sector. Also over the past week, Bitcoin has risen by 26%, Bitcoin Cash the 20% Ethereum by 17% e Ripple 14%. Overall, the entire sector posted a very strong advance, which logically benefited the projects considered most important.
Like, in fact, that of Charlie Lee, always in the good graces of the observers. If the all-time high of $ 375,29 is still a long way off, the progress made is still a good sign. Though some clouds remain on the horizon.
Litecoin seems to want to insist on MimbleWimble
Recently, Litecoin relaunched MimbleWimble, a protocol expressly designed to improve privacy and make the traceability of operations much more complex. In practice, a modified version of the Proof-of-Work algorithm that is the basis of Bitcoin has been implemented. With the one retouched the blocks appear as one big transaction, thus preventing the individual inputs and outputs relating to transactions from being identified. A modification which, however, seems to have been made on purpose to run into the ire of the tax evasion authorities, making Litecoin a privacy coin.
Because MimbleWimble could cause trouble for Litecoin
Right now, the privacy coins are the subject of a real crusade by some governments. In particular, those of the United States and Russia, whose agencies have set to work to identify and target anonymity-oriented cryptocurrencies. Starting from Monero, against which the strategy adopted was the launch of tools capable of counteracting the tendency to hide the authors of the transactions.
Monero himself, along with Dash e Zcash has been running in recent weeks in ban by some exchanges, especially those who don't want trouble with the authorities, like ShapeShift.
A provision which could be extended to Litecoin, in the event that the developers carry out unwelcome policies. A factor that should certainly be taken into consideration by Charlie Lee, so as not to clip the wings of a project which could grow significantly, on the wings of a health situation which is creating the best conditions for a further positive phase of digital assets.