Cryptocurrencies in general made serious improvements on Friday, with Litecoin seeing the largest growth in a single day, to a massive 30%.
As at the time of publishing this report, Litecoin (LTC) is trading at a price of $43.72 with a market cap of $2.63 billion.
With this feat, Litecoin has now reclaimed its position in the top five digital currencies after slipping down in 2019.
The huge price recovery would also give huge relief to LTC investors, as it lost over 90% in 2018 bearish year.
Recall that in early 2017 bull run, Litecoin had surged to hit its all-time high of $350.
Cooperation Between the Litecoin Foundation and Beam
Another reason for Litecoin’s price surge is the announcement of the partnetship between the Litecoin Foundation and Beam. The Litecoin foundation is seeking help and expertise of Beam to implement the Mimblewimble protocol on the Litecoin network through Extension Blocks.
For a while now, Beam has been working on improving privacy in the cryptocurrency sector while promoting the Mimblewimble protocol.
The firm explains during the merger:
“We have started exploration towards adding privacy and fungibility to Litecoin by allowing on-chain conversion of regular LTC into a Mimblewimble variant of LTC and vice versa. Upon such conversion, it will be possible to transact with Mimblewimble LTC in complete confidentiality.”
It added that, “Upon such conversion, it will be possible to transact with Mimblewimble LTC in complete confidentiality.”
Since the beginning of 2019 however, Litecoin developers have shown their intent on implementing Confidential Transactions and Mimblewimble. These solutions were initially developed for the Bitcoin blockchain network back in July 2016.
More so, with Litecoin and Bitcoin networks having a similar structure, LTC developers are also able to work with it.
Last month, Litecoin founder Charlie Lee through his official Twitter handle @SatoshiLite, said the LTC community is actively working to complete the implementation of Confidential Transactions by end of 2019.
Fungibility is the only property of sound money that is missing from Bitcoin & Litecoin. Now that the scaling debate is behind us, the next battleground will be on fungibility and privacy.
I am now focused on making Litecoin more fungible by adding Confidential Transactions.
Further more, he added:
“Litecoin dev team spent hours discussing how to add Confidential Transactions. The way to do a softfork CT is very similar to doing extension blocks and extension blk may be simpler and can do a lot more”.
Analyst Views On Recent Rally
More so, despite the jump to $43, popular analysts in the cryptocurrency space have continued to claim that the, LTC is facing crucial resistance at these levels.
Crytpo analyst, The Crypto Dog confirms he is offloading his LTC at $43 before taking further long positions, adding that the LTC is lacking enough volumes to further pull it northwards.
Another popular crypto analyst Don Alt noted that LTC/BTC is nearing its resistance at 0.015 BTC, that is slightly higher that LTC’s current price of 0.0117 BTC.
I’m just saying if you’re not an LTC maximalist after seeing this chart I don’t know how to help you.
When back to #2 on CMC?
There she goes.
One more resistance to break and then the sky will be clear.
I’m rarely ultra bullish at resistance but when the chart looks that nice it’s the way to go.
More so, on February 4, a tweet from Moon Overload showed that LTC was heading for $50. Here’s what he said.
Targeting around $50 for $LTC | $LTCUSD on high TFs
In all, it would be interesting to see the LTC goes from here.