Litecoin, Maker, and LidoDao are all witnessing a significant surge in address activity, a trend that typically aligns with an increase in market capitalization. While Maker [MKR] and LidoDao [LDO] have reported an 8% rise since the beginning of the new year, LTC has yet to observe a similar uptrend. Despite the heightened network activity, market analysts have noted a lack of corresponding movement in LTC’s price, leading to a characterization of its price trend as displaying a bullish divergence.
In contrast, LDO and MKR have both demonstrated an 8% increase in value since the start of the year. However, Litecoin faced considerable adversity during the market crash in early December of the previous year, losing over 14% in a mere 24 hours, as indicated by data from CoinMarketCap. Analysts, including prominent figure Ali Martinez, attributed this abrupt decline to intensified selling pressure. Despite a broader market rebound, LTC has struggled to recover significantly and remains below $65.
Martinez has also cautioned investors about potential future price dips, stating, “Post-recent dip, the outlook for Litecoin appears challenging. If the selling pressure continues, LTC might experience a push down to $38, potentially confirming a bear flag formation.”
Litecoin Gets Top Billing In BitPay
Despite the subdued price action, Litecoin, often referred to as the “silver” cryptocurrency in contrast to Bitcoin’s “gold,” has solidified its standing in the digital currency landscape due to its swift transactions and low fees. It has emerged as a frontrunner in BitPay’s payment processing service, accounting for an impressive 38.2% of all BitPay transactions, according to data from the Litecoin Foundation.
Moreover, Litecoin achieved a noteworthy milestone on December 20th, reaching an all-time high of 1.27 million transactions, a figure that has continued to rise, reaching nearly 1.5 million transactions as of January 2, 2024. This surge underscores LTC’s robust transactional capabilities when compared to leading cryptocurrencies such as Bitcoin [BTC] and Ethereum [ETH].
In a separate development, an exchange-traded fund [ETF] for the coin seems to be on the horizon, with Grayscale Investments, the world’s largest digital asset manager, announcing that its single asset products, including Grayscale Litecoin Trust [LTCN], have become SEC reporting companies. This move suggests a growing institutional interest in LTC as a viable investment option.