The cryptocurrency market has recently faced selling pressure, causing a variety of coins to drop in value. However, Litecoin (LTC) has seen a significant increase, with its price rising over 7.59% in just 24 hours. Currently trading at $87.05, Litecoin has a market cap of $6.3 billion. Throughout the ongoing crypto market rally, Litecoin has managed to surpass the $100 mark twice this year – once in February and once in April. Despite having retraced below $80, LTC seems to be back on an upward trend. With the upcoming Litecoin halving set for August 2023, some market analysts credit this event as the driving force behind the recent surge in LTC price. However, it is important to note that the halving is still three months away, suggesting that other factors may be at play.
One potential explanation for Litecoin’s recent success is the dramatic increase in active addresses on the Litecoin network, as observed by on-chain data provider Santiment. Although transaction volumes have only increased incrementally, the number of active addresses – those participating in transactions on the blockchain – has experienced substantial growth. Curiously, many of these transactions appear to be relatively small in size. This phenomenon may be attributable to the recent introduction of the LTC20 standard.
Following in Bitcoin’s footsteps, Litecoin introduced the LTC20 standard for non-fungible tokens (NFTs), which quickly garnered attention within the market. Santiment’s report suggests that the rapidly growing number of wallets holding between 0 and 0.001 LTC may be linked to the spike in active addresses, signifying that the introduction of LTC20 could be the primary force behind this anomaly.
The real question now is whether Litecoin can maintain its current momentum and potentially break the $100 mark with strong trading volumes. Litecoin creator Charlie Lee has predicted a massive post-halving LTC price rally later this year. However, the cryptocurrency’s price has previously faced rejection at $103 on two occasions, which led to a temporary pullback. A breakout above that threshold has the potential to spark the next rally.
While recent trends in the cryptocurrency market have been promising for Litecoin enthusiasts, it is crucial that investors exercise caution and conduct their research before committing to any cryptocurrency, LTC included. The volatility of the market and the success of individual coins can vary, and no one author or publication can guarantee a specific outcome or provide complete protection from possible financial losses.
Source: Coingape
