We all Know about the recent trends in Litecoin but if I told you that this crypto currency was once worth $4 Early this year would you believe?
Now that is like a dream to watch Your $4 grow into $50 a whopping 500%+ gain in less than 6 months or about 6 months.
That's crypto currency for you. But This is the future of money as many crypto currencies are coming up daily from ICO'S and even they are successful many of them starting from Ethereum to EOS.
Why did you think Litecoin Price Increased?
Why did Litecoin price rise along Bitcoin? Is it restored investor appetite that spurs the activity in cryptocurrency markets? Or is it because global regulators and other financial key players discuss Cryptocurrency application?
Cryptocurrency market is booming, with Bitcoin and Litecoin leading the pack. Global investors already perceive digital currencies as a great alternative to the conventional monetary system, while regulators rush to set specific guidelines for cryptocurrency markets. One of the latest nations to join the top countries where Bitcoin is legal – South Korea.
Litecoin price jumped over 35% in the space of a week, This means that demand for the crypto currency is high.
Now lets take a look at some key factors.
No.1:The 24 hours volume. This chart tells us the Volume in $ amount of Trades World wide in General This helps us to know when the coin is in High Demand and when it's not even demanded. Now we know that the major factor that affects the crypto currencies price surge is the law of Demand and supply. When Demand is high and and supply is low the price of the commodity Increases and When the Demand is low and the and supply is high the price of the commodity Decreases.
We can use Zcash as an Example for this theory.
Looking at Zcash you can see that the crypto currency was once worth $4000+ in late 2016 during it's lunch before crushing down trends to below $12. Now why did such happen?
It's simple to analyse that. We know that Zcash has a circulating supply of approximately 1.5million Zcash coins (that's supply) and as of late 2016 24 hour trade volume was around $4million (that's demand). At a 24 hours volume of that high with a less amount of Zcash coins in supply that drove in the price surge of Zcash coins then when the volume drops the price will follow suite.
NO2: Circulating Supply. The circulating supply of a coin shows the amount of coins available for supply thus this also affects the coins price through the law of demand and supply. Like I explain above.
Take Bitcoin for Instance A coin with a Total supply of 21 million Bitcoins and a 24 hours volume of around $900 million and this makes the price of 1 bitcoin to be around $2500-$2700 this but only shows that their is still more room for a major price growth in Bitcoin when maybe the Market cap of Bitcoin tops to a $50 Billion You will see the price of Bitcoin ranging from $5000-$7000 approximately. This is also applicable to many other crypto currencies. You just need to know the right one.
No3: Maximum supply this is actually the Total supply of the crypto currency. The amount of coins that can be produced.
We all can see the major litecoin growth today and even other crypto's like The Dash coin also. When will you be convinced that crypto currency is the future?
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