Connect with us
Active Currencies 14313
Market Cap $2,557,594,164,344.10
Bitcoin Share 51.63%
24h Market Cap Change $1.58

Litecoin’s key PoW metric has some tips for LTC’s long-term holders

2min Read

Share this article

Litecoin [LTC] witnessed considerable growth on the price front over the last three months. The altcoin also showcased a positive move in the crypto mining space. Interestingly, it has been consistently improving its hashrate and mining profitability. 

A growing hashrate for any proof of work (PoW) network indicates strength and security for the blockchain. As of 30 September 2022, Litecoin’s hashrate stood at 0.48 KH/s. 

Source: Messari

There’s a pool of reasons

The reason for miners’ interest in Litecoin could be the revenue generated by mining LTC. At press time, Litecoin mining generated a 39% profit for miners and outperformed other PoW cryptocurrencies, such as Bitcoin [BTC], Ethereum Classic [ETC], and Monero [XMR].

When mining a certain cryptocurrency isn’t profitable, miners are forced to sell the crypto they have mined to offset their losses. Since Litecoin mining has been profitable on the whole, miners have had more incentives to hold on to LTC instead of selling the same.

Furthermore, LTC witnessed significant growth in popularity on social fronts. Over the past month, Litecoin’s social mentions grew by 9.4% and its social engagements increased by 22.8%.

The sentiment towards LTC, however, was relatively neutral over the past 30 days. A huge spike in the weighted sentiment was observed over the past few days. 

Source: Santiment

Somewhere between black and white

Despite everything good happening with the altcoin, a few areas of concern surely need to be kept in mind. Litecoin’s Market Value to Realized Value (MVRV) ratio witnessed a significant decline over the last month. This could be perceived as a bearish sign by potential investors. 

The drop in Litecoin’s development activity could also be a warning sign for investors. This could, in some way, suggest that developers weren’t (actively) contributing to new upcoming projects or upgrades.

Source: Santiment

That said, at press time, Litecoin was trading at $53.73 after declining by 0.40% in the last 24 hours. It witnessed a mere 0.2% growth over the last seven days. 

Share

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.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.