Litecoin futures have recorded a new all-time high today.
We are talking about open interest, which jumped over 600 million dollars.
These numbers are far lower than those of bitcoin ($15 billion) or Ethereum ($6 billion), but still very significant for the LTC market, which has far lower trading volumes.
The growth of Litecoin futures
A year ago the open interest of Litecoin futures was around $70 million and until July 2020 it had never even exceeded 100 million.
The real boom, however, took place in November, when the $250 million threshold was exceeded. In December, the $500 million mark was almost reached, while in January 2021 the $500 million mark was exceeded.
After falling below $400 million at the beginning of February, the open interest of Litecoin futures rose again, touching an all-time high today at 650 million dollars.
Note that the price of LTC has also been on a similar trend.
In October 2020 it was below $60, but already in November, it rose to almost $90.
In December it shot up to $130, and then took off in January and pushed up to nearly $180. Since then, the price dropped to $122 in late January, but in February it started to rise again, surpassing $180.
However, the all-time high of the price, $375 touched on December 19th, 2017, is still far away.
Therefore, in the last three months, the price has increased by 200%, while the open interest by 285%.
Charlie Lee on Tesla and Bitcoin
By the way, the founder of Litecoin, Charlie Lee, recently expressed himself very positively on the news of Tesla’s investment in bitcoin. Lee in fact is also a strong supporter of Bitcoin.
During a recent interview he said:
“I think that’s huge. When merchants start accepting Bitcoin without selling it, we will start to break out of the fiat system. And have a circular economy where merchants accept crypto, pay salaries with crypto, and spend crypto for B2B”.
Then he added that Tesla’s investment is a turning point, as the richest man in the world has clearly shown his belief in Bitcoin, so much so that he has put 7% of Tesla’s cash in BTC.
In fact, according to Lee, many companies will now follow suit, as they will have more confidence.