The current litecoin pump is happening on OKcoin. It started on July 5th as you can see from the chart below taken from bitcoinwisdom
As we can see there is a pattern with the buy volume for OKCoin. It looks like it is happening in the hours that china is awake. So if the pattern continues we should see litecoin on the rise, but will it happen?
Litecoins has seemed to decouple from bitcoin and looked like it was dying for quite some time. However, since July 5th we have been seeing continuous buy volume form OKcoin. One theory as to why the pump might be happening is because Litecoin is following into Bitcoin’s footsteps since ASICs are taking over. When ASICs were taking over Bitcoin it was soaring in price. It created a huge bubble which popper right around Black Friday of last year.
Will the release of Litecoin ASICs contribute to its growth? Since the new 80Mhs hardware have shipped Litecoin’s network has risen over 200%. That might be a clue as to why the price is rising so rapidly. According to this reddit thread:
The new devices out of Innosilicon were introduced at the tail end of April, where the network started experiencing large leaps in hashrate/difficulty. They were quickly joined by Zeusminer and Silverfish. In just TWO MONTHS, the network hashrate has grown over 200%.
April 26th 173,226 MH/s – 6,050 Difficulty
July 7th 532,540 MH/s – 18,163 Estimated next difficulty.
Difficulty has TRIPLED in just two months. It had doubled in the two months prior, thanks to Gridseed.
Here is a good argument in regards to whether the increase of the total hashrate of Litecoin’s network have any correlation to it’s price:
It is interesting to see whether Litecoin will fall into a bubble because of the adoption of ASICs or maybe this is just another pump to an already dying coin. Only time will tell.
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