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Are Litecoin holders in a better position than Ethereum investors?

3min Read

Data shows that both cryptocurrencies are undervalued and may tap higher prices in the mid-term.

Are Litecoin holders in a better position than Ethereum investors?

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  • Transactions on Litecoin increased across all levels, leaving Ethereum trailing
  • ETH and LTC prices fell in the last 24 hours, but they might surpass major milestones soon

It is unusual to find Litecoin [LTC] surpassing Ethereum [ETH] at any level. However, on 6 June, the number of active addresses on Litecoin’s network jumped by a mind-blowing 75%.

According to data from IntoTheBlock, the difference was over 100,000 in favor of Litecoin. In total, the figure was 602,720 and represented the highest level of activity on the network since January.

Litecoin addresses rises more than Ethereum addresses

Source: IntoTheBlock

After Cardano, Litecoin takes Ethereum out

For context, active addresses measure the number of unique wallets engaged in successful transactions on a blockchain. A few days ago, the coin had registered higher values than Cardano [ADA] on the same front.

However, it is important to mention that most of the transactions emanated from wallets with a small balance.

That being said, those holding LTC worth $10,000 to $10 million were not left out. According to IntoTheBlock’s latest post on X,

“While most of the increase is due to transactions smaller than $10, there is a noticeable rise in transactions of all sizes.”

Here, it’s worth noting that the rise in network activity did not trigger a hike in LTC’s price. At press time, Litecoin was valued at at $83.52, following a fall of 1.8% in the last 24 hours. Ethereum, on the other hand, was trading at $3,791, with the altcoin depreciating slightly too.
Additionally, AMBCrypto looked at Litecoin’s market cap to thermocap ratio. This metric measures a cryptocurrency’s valuation relative to the total security spend by miners. When the market cap to thermocap ratio spikes, it means the coin is trading at a premium when compared to miner spend.
In this instance, the price could be termed overvalued.
Historically, as shown below, an extremely high reading of the metric causes a correction. However, at press time, the ratio was 0.00000003. This was a low reading, compared to periods when Litecoin has been overheated.
Litecoin's market cap to thermocap ratio shows that LTC could increase

Source: Glassnode

Are LTC and ETH at a discount?

Simply put, LTC may be trading at a discount. Should the market return to a highly bullish state, the price of LTC could move past $100 from its press time position.
To confirm this thesis, AMBCrypto examined the Market Value to Realized Value (MVRV) ratio. This metric track the profitability of holders in relation to coin valuation.
At press time, Litecoin’s 30-day MVRV ratio was 13.35%, indicating that the average holder would make profits if they sell. However, the gains might be high enough to trigger widespread profit-taking.
For Ethereum, the 30-day MVRV ratio was 4.69%. While this suggested that ETH and LTC may be in similar spots, it also addressed the notion that Litecoin holders might be in a better position than their Ethereum counterparts.
Litecoin and Ethereum prices can increase

Source: Santiment

Realistic or not, here’s LTC’s market cap in ETH terms

Moving on, it is possible to see ETH’s value surpass the 4,000-market in the mid-term. Over the same period, LTC might also breach its $100 psychological resistance.


Victor Olanrewaju is a full-time journalist at AMBCrypto. Settled in Lagos, his fascination with blockchain technology and the cryptocurrency market arose out of his love of freedom and everything free. As a Nigerian, Victor understands the impact unfounded financial restrictions have on a population. He sees Bitcoin and cryptos as a way to circumvent these obstacles, as a tool for value creation despite all the setbacks. A graduate in Physics, Victor previously worked as a Senior Marketer at Melange Technologies. Before that, he dealt with crypto-marketers on a regular basis in his capacity as Copywriter at Ventrix Media. At AMBCrypto, Victor’s focus is on assessing the real effectiveness of both on-chain and off-chain developments on a project and its community sentiment.
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