From the vantage point of today’s price levels, Litecoin could be one of the most undervalued cryptocurrencies on the market. The world’s fifth-largest coin is about to get a major boost in a few weeks with the launch of LitePay, the self-styled instant payment platform.
The LitePay payment processor will officially launch Feb. 26, according to the company’s official Twitter feed. The system will enable retailers to accept LTC payments instantaneously, regardless of where their customers are located. Through a LitePay card, users can make payments to global merchants worldwide.
By launching LitePay, Litecoin is delivering a system whereby businesses can accept cryptocurrency without having to worry about slow transactions or price volatility.
Litecoin founder Chaarlie Lee first announced the LitePay project before Christmas. In a few weeks, customers will have the opportunity to use the new infrastructure to purchase products and services in U.S. dollars with a flat transaction fee. The infrastructure will also allow for a Litecoin wallet to be installed on mobile and desktop browsers, and for withdrawals to be carried out through VISA-friendly ATM machines.
In its own words, LitePay describes its services as follows:
“Use LitePay’s retail, e-commerce, billing, and donation tools to accept payments from customers anywhere on earth. Receive settlement from Litecoin payments directly to your bank account in your own currency, with zero price volatility or risk.”
The new platform has been described by some analysts as a “game-changer” for its ability to solve the limited usability problem plaguing most major cryptocurrencies, including bitcoin. Whereas bitcoin has struggled with mainstream adoption as a unit of transaction, Litecoin appears to be making faster progress in terms of transaction speed and affordable fees. In the immediate term, this could generate additional bids for the LTC token as traders look to capitalize on the news. As such, it is reasonable to expect Litecoin prices to rise, perhaps substantially, ahead of the Feb. 26 launch.
The value of LTC tokens rose sharply at the start of Wednesday’s session, with gains far outpacing the broader cryptocurrency market. At press time, Litecoin was up 13.4% at $179.46, extending its five-day recovery to more than 22%.
Intraday chart patterns show Litecoin has entered overbought territory on the RSI, which suggests that a pullback may be in order as prices consolidate. The coin is currently trading at two-week highs, having overtaken Cardano as the world’s fifth-largest cryptocurrency with a market cap of $10 billion.
Trade volumes in LTC have come in at nearly $928 million over the past 24 hours, according to CoinMarketCap. More than a third of the daily transactions were processed on the OKEx platform, which is now the world’s second-largest exchange by volume. Coinbase’s GDAX exchange also processed 16% of the daily turnover, based on latest available figures.
Trading in LTC is fairly democratized, with dozens of exchanges processing millions of dollars in transactions daily.
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.
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