Jul 13, 2024 12:05
Litecoin has been under intense selling pressure in the past few months. After peaking in April, the coin has been trending lower, looking at the arrangement in the daily chart. There is strength at spot rates. So far, LTC is up 20% from July lows and continues to peel back losses. The expansion in price also comes amid other positive developments, at least from on-chain developments. Is Litecoin A Whale Haven? According to IntoTheBlock, there has been a significant uptick in on-chain transfers on the proof-of-work network. As of July 12, the network has processed $2.85 billion worth of transactions, each averaging at least $100,000. Related Reading: Spot Ethereum ETFs FOMO: Tron Founder Justin Sun Drops $5 Million On ETH This level translates to over half of the network’s market cap. Most importantly, Litecoin is doing far better than top altcoins. IntoTheBlock data shows that though Dogecoin has roughly 3X the market cap of Litecoin, it only sees $590 million in large transfers daily. The huge difference means Litecoin attracts more whales, most likely drawn to the network’s security and low fees. Litecoin has not changed, and its original mandate of complementing Bitcoin remains. It operates as a proof-of-work network powered by miners who must commit to buying new gear and updating it regularly to be competitive. As of July 13, Litecoin had a hash rate of 1.01 PH/s, according to Coinwarz. Despite Litecoin’s Halving in 2023, more miners are unfazed by falling rewards and continue to secure the network. MWEB Private Transactions Rising, LTC Unfazed By Short-Term Price Fluctuations The spike in Litecoin transactions also comes amid the increasing adoption of Mimble Wimble (MWEB). According to MWEBexplorer data, MWEB transactions have doubled in the past few days. This surge points to a rising preference for private transactions among Litecoin users. Through MWEB, users can send private transactions. Though MWEB transactions are more expensive, coming in at $0.00267 versus $0.0008 for ordinary transactions, it is relatively cheaper than transacting on Bitcoin. According to YCharts, the average Bitcoin transaction fee now stands at $1.487, up from 1.163 recorded yesterday. Related Reading: Analyst Upbeat On USTC, Sees Price Soaring Over 300% With more transactions posted on Litecoin, LTC holders are equally unfazed by dropping prices; a whopping 71% are in the red. As of July 12, IntoTheBlock data reveals that 77% of LTC holders have held their coins for over a year. Only 6% bought LTC within the last month. Feature image from DALLE, chart from TradingView
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