Litecoin topped the crypto leader board on Tuesday after a high-profile startup explained why it was moving away from bitcoin smart contracts in favor of LTC.
LTC/USD Price Levels
Litecoin outpaced the broader crypto market on Tuesday, gaining as much as 15% during intraday trade. By comparison, the cryptocurrency market cap rose by as much as 8%.
At the time of writing, LTC/USD was trading at $134.02 for a gain of 12.5%. The digital currency’s market cap has risen to $7.5 billion, the highest since Mar. 28.
More than $374 million in Litecoin exchanged hands on the major exchanges Tuesday. OKEx was the biggest market, accounting for nearly one-quarter of the daily volume. GDAX was second with 15.5% of the turnover.
Momentum has quickly returned to the Litecoin trade, according to the MACD and Relative Strength Index (RSI). The coin’s movement over the last 24 hours, combined with a broad recovery attempt in the market, makes a compelling case for continued recovery in the short term.
Abra Embraces Litecoin
Abra, a digital wallet app backed by American Express, is expanding on its use of Litecoin smart contracts to power its exchange services. In a Reddit AMA session on Monday, Abra CEO Bill Barhydt explained why Litecoin was on his company’s radar and why it was quickly replacing bitcoin as the smart contract of choice.
Barhydt cited three reasons behind his company’s decision to go with Litecoin: “1. commitment to bitcoin compatibility: core roadmap, p2sh support, lightning support, etc; 2. slightly better scalability than bitcoin in short term (block size and block times); 3. mining fees which are primarily a function of #2 although this is more of a short term benefit as mining fees would likely sky rocket if we’re successful anyway!”
Abra has developed a smart contract-based investment platform that allows users to store cash deposits and conduct transfers between two mobile phones. Beginning this month, the service will use Litecoin as its underlying technology to facilitate deposits and transfers.
Litecoin founder Charlie Lee confirmed the Abra partnership last month via Twitter. In a Mar. 15 tweet from @SatoshiLite, Lee said Abra’s decision was reached “after a long and thorough research.”
Despite the shift away from bitcoin, Barhydt remains extremely bullish over the digital currency’s long-term prospects. He recently argued that bitcoin’s bull market will resume in the very near term as hedge funds, high net-worth individuals and commodity speculators enter the crypto market.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.