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Litecoin: Here’s the good news ahead of its halving

2min Read

Litecoin’s on-chain transaction activity has gradually increased, indicating that big players were beginning to jump in on their investments.

Litecoin achieves this major milestone ahead of its halving event

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  • The increased network traffic led to an uptick in the coin’s hash rate over the past few weeks.
  • LTC crashed below $90, leading to long liquidations worth $1.65 million in the last 24 hours.

Litecoin’s [LTC] widely anticipated halving event is a little over two months away, which will be its third after 2015 and 2019. The excitement surrounding the event began to build, and on-chain transaction activity has gradually increased, indicating that big players were beginning to jump in on their LTC investments.


Is your portfolio green? Check out the Litecoin Profit Calculator


Crypto Analyst Ali Martinez took to Twitter to draw attention to a major milestone in the proof-of-work (PoW) network.

Martinez noted that over 832,000 active wallets were interacting on the chain as senders and recipients, a level not seen in the 12-year history of Litecoin, popularly known as the “silver to Bitcoin’s gold.”

 

‘Lite’ hits the roof

LTC has been on a tear ever since users bogged down by rising transaction fees on the Bitcoin [BTC] network, chose to shift towards less expensive alternatives.

The other driving force behind Litecoin’s increasing network traffic was the introduction of LTC-20 token standard. This is a fork from the BRC-20 standard on which Bitcoin Ordinals NFTs are based.

The increased network traffic also led to an uptick in the coin’s hash rate over the past few weeks.

According to Coinwarz, the hash rate hit 778.5 TH/s on 18 May, just below the ATH of 785 TH/s.  A growing hash rate is indicative of the computational power of miners to secure the network.

Source: Coinwarz

HODling increases

A look at the Age Consumed metric, which tracks movement of previously idle tokens, revealed that most holders continued to hold their tokens, underscoring the confidence in long-term potential of Litecoin.

The spurt in addresses was primarily driven by retail investors who created miniature sets of wallets to transact LTC-20 tokens.

Wallets holding between 0-0.01 LTC surged dramatically, rising to nearly 6 million at the time of writing, data from Santiment revealed.

Source: Santiment


How much are 1,10,100 LTCs worth today?


LTC drops below $90

At the time of writing, LTC exchanged hands at $88.09, recording a sharp drop of 5.5% in the 24-hour period, data from CoinMarketCap showed. The latest plunge reversed some of the previous week’s gains.

As a result of the crash, long positions worth $1.65 million were liquidated in the last 24 hours, data from Coinglass showed.

Moreover, the Open Interest (OI) in LTC futures plummeted nearly 6% to $402.85 million. However, on a broader note, the OI surged by 16% on a month-to-date (MTD) basis.

Source: Coinglass

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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