After cryptocurrencies kicked off 2018 with a bang, they tumbled like a house of cards by the end of it. This fallout has been so stark that the broader crypto community ended losing more than $700 billion in market cap. Generally said, this was nightmarish for all investors around the world.
A lot of them have always remained bullish on the fundamentals that govern the asset class, particularly when it comes to crypto or blockchain projects which stood the test of time and are also backed by a robust combination of steady technological progress, as well as supportive communities.
Here, we will talk about Ethereum and Litecoin, as both the assets were around for a while now, and they often exhibit some degree of stability, as Bitcoin drags along the broader crypto community while it undergoes sharp fluctuations.
Which will bounce back faster: Litecoin or Ethereum?
However, are they now in a position to bring much-needed relief to the crypto community in this year? We will see below.
One of the oldest cryptos in in crytpo community, Litecoin, appeared in 2011 as a fork of Bitcoin under the MIT/X11 license. Now, it is the number eight crypto that has a market cap of almost $1.9 billion.
At the height of the crypto boom which occurred two years ago, in 2017, Litecoin surged all the way up to about $350 and even more. But, more than one year of lingering slowdown later, it is now valued at only about $32.
Ethereum is comparatively younger with its public, as it was released back in 2014. But, because of several factors, which include its uses beyond cryptos, it climbed up the cryptocurrency charts rather quickly, and it soon became the second most famous digital asset after Bitcoin of the crypto community.
Nowadays, the price of Ethereum or ETH hovers around $120, which is soul-crushingly low for people that invest in the asset back in early January of last year, when the coin peaked at an all-time high of $1,400+.
With that being said, the million-dollar question investors are now asking how long until Litecoin or LTC and Etereum or ETC bounce back from the downward spiral.
Unluckily, there are still no signs of any immediate reprisal for either. Actually, one part of the crypto community claim that the odds are high that LTC, as well as ETH, could nosedive all the way down to $2 and $10 respectively this year. But, remember that most of the forecasts are purely speculative and are also not backed by a verifiable/reliable method or data.
While there is a possibility that the broader crypto community is going to get harmed some more in the months that come, a lot of investment experts are confident that this year is the one when crypto volatility is finally going to start to subside. Institutional investors are also expected to play a significant role on that front.
There are a few factors why a lot of industry insiders believe that institutional investors are going to flock to the crypto space in large numbers this year, including:
Regulators in a couple of significant economies are by now convinced that crypto is here to stay and hence, preparing to introduce regulatory frameworks to oversee the sector.
The number of quality custodian solutions for digital assets is continuously on the rise.
The adoption of crypto futures, as well as forward contracts and derivatives, are gaining momentum.
The odds are high that the U.S. Securities and Exchange Commission is soon going to grant approval for a crypto ETF, opening the floodgate for others too.
Actually, industry experts are of the view that the crypto space can have already quietly slipped into the institutional phase.
Predictions about Litecoin, 2019
The reasons to be optimistic about the outlook of LTC in 2019 are real. However, here we will explain just a few things: Bitcoin is going to be the most prominent digital asset for the foreseeable future. Also, the performance of the broader market in 2019, which includes that of LTC too, is inherently going to depend on the performance of the most popular crypto in the world.
As the prices are stabilizing in a largely-regulated crypto economy with a higher degree of participation by some institutional investors, Bitcoin may also witness the second wave of growth.
Just like always, positive developments in the BTC network are directly going to lead to a surge in the performance of LTC. Not only because the growth of BTC eventually trickles down to LTC, or for that matter, to all of the significant cryptos, but also as of the stability issues of BTC.
When the market is bullish, and BTC is also surging, the added traffic in the BTC network often clogs the system and leads to higher transaction fees. Such scenarios are definitely going to draw an essential chunk of the general BTC traffic to its own network.
Some other factors which hit towards an increased demand for LTC in this year are:
Mining LTC is more convenient as of the new Proof of Work or PoW algorithm;
It is less volatile than most of the other significant cryptocurrencies;
Users may choose easily atomic swap between BTC and LTC;
LTC is compatible with the Lightning Network, which furthermore adds to its speed;
Almost all hardware wallets support it.
Predictions about Ethereum, 2019
Ethereum shed almost 90% of its value, year-on-year as of press time. That is actually the massive loss – may be the worst performance among all of the major virtual currencies since the current slowdown started.
Unlike LTC, ETH is not crypto through and through. Also, it doubles as a platform which facilitates smart contracts powered by Ether, which is the native crypto element of the ETH network.
A lot of corporations, as well as organizations, utilize ETH smart contracts to create their products. This demand is actually vital for ETH to retain the clout as one of the top 3 cryptocurrencies in the world.
Despite plummeting prices, this year is expected to be an exciting one for ETH. Mainly taking into consideration that the widely anticipated Constantinople hard fork is going to hit the sometime later in February this year. Once that occurs, the average block time is going to start surging and will probably push the difficulty bomb to almost about half-a-minute.
Another significant development is going to be ETH 2.0 incorporating the Casper upgrade, which is the next-generation proof-of-stake algorithm in the network.