Litecoin (LTC) recently topped the cryptocurrency leaderboard after Amex-Backed Abra startup announced that it’s transitioning the Bitcoin (BTC) smart contracts in support of the LTC. Abra, which is a digital wallet app supported by the American Express, will start using the Litecoin smart contracts to influence its own exchange services. The collaboration between the two firms was confirmed last month through Twitter when Charlie Lee the founder of Litecoin announced that Abra is dropping Bitcoin for Litecoin smart contracts.
According to Bill Barhydt, there are three reasons why the firm decided to opt for the LTC. First, the scalability of the LTC compared to BTC especially in a short-term, second, the mining transaction fees, which are far much affordable than Bitcoin, and third, the commitment to the Bitcoin compatibility.
After the Abra’s news went out, LTC’s prices gained more than 15% on the same day and by the cryptocurrency industry comparison, LTC increased by 8%. Currently, the Litecoin verses the USD dollar is trading at $134.02 with a drastic gain of about 12.5%.
Abra has a new smart contract-based investment platform that enables its users to deposit or transfer cash to friends and relatives. The new app will now use the LTC as the fundamental technology to aid in both the deposits and cash transfers between two mobile phones.
Though Bitcoin has been leading the crypto market for a long time, the largest market gain is coming from the popular altcoin, LTC. Most investors have moved to the LTC after reports emerged that Abra is now offering to power its app.
According to Barhydt, the company’s core asset is currently the LTC. The Abra’s app allows users to freely invest in various cryptocurrencies and more than 50 fiat currencies across the world.
Barhydt also commented that plans are underway to strategically compete with other giants including the Binance and Coinbase. However, Abra will not operate as a trading platform, but rather as a simple app that enables users to access multiple crypto assets.