Litecoin
Grayscale adds 32K Litecoin amidst the dip: Time to go long?
Grayscale has added 32K LTC coins as Litecoin becomes top cryptocurrency for payments in the U.S.
- Grayscale has bought the dip and added 32K LTC coins to its Trust.
- Litecoin has enjoyed explosive growth as the preferred crypto pay option.
The crypto market, especially the altcoin sector, is down 30-40%, offering massive discounts. Litecoin [LTC], in particular, was down over 30% and traded below $80 from a high of $112.8.
Grayscale grabbed the hot discounts and added 32K LTC coins to its Grayscale Litecoin Trust on the 16 of April. Based on current market prices, that’s an addition worth $2.3M of LTC.
The addition brings Grayscale Litecoin Trust AUM (assets under management) to $132M. According to Coinglass data, Grayscale’s LTC holding jumped from 1.62M to 1.65M after the accumulation.
The accumulation comes on the back of LTC’s massive adoption in the crypto pay ecosystems. In a recent statement, LTC recorded 130% transaction count growth on a year-on-year basis on Binance Pay.
“Litecoin usage on Binance Pay grew significantly in the last couple years!! Data from Binance shows that LTC grew 130% in Transaction Count & 65% in Transaction Volume on BinancePay year over year!!”
The growth doesn’t stop at Binance Pay.
Litecoin is the “most common” crypto in…
BitPay report showed that LTC was the most used cryptocurrency in payments in the US.
According to the report, on average, throughout Q1 2024, LTC was the top cryptocurrency for payment transactions on the platform.
Part of the report read,
“Litecoin is the cryptocurrency most commonly used for transactions.”
Additionally, the report highlighted;
“On average, Litecoin has the highest transaction count.”
Over the same period, LTC recorded an average transaction count of over 126K. LTC was followed by
Bitcoin [BTC], and Ethereum [ETH] came third.Overall, Litecoin has massive utility growth. However, Grayscale’s latest LTC accumulation didn’t induce any market reaction.
One plausible reason is that the Trust operates in OTC (over-the-counter) markets, which hardly reflect on centralized exchanges’ order books.
Nevertheless, LTC has potential upside in the long-term if the market condition improves and the bull market extends.
A pseudonymous LTC trader with an X (formerly Twitter) username “Crash” correlated LTC’s performance to BTC cycles and established that,
“Litecoin is at $79 right now, while people chase a 7% return in the stock market, LTC hits $370+ every cycle. And it spends plenty of time around $100; that’s a 21% return at only $100 LTC”
Source: X/CrashiusClay69
Going long on LTC could be worth it at the current price if the market pans out as projected. However, past historical performance doesn’t always guarantee future success.
