Litecoin has witnessed a substantial reduction in its active addresses, with approximately 200,000 or 2.13% of all LTC wallets liquidating over the past ten days. This decline represents the most significant drop in wallet numbers since October 2022. Notably, the wallets capitulating predominantly belong to small-scale holders, contrasting with the resilience demonstrated by Sharks and Whales in the cryptocurrency realm, Santiment reported. In terms of market value, Litecoin has recorded a massive setback, with a 55% decline over the past five months when compared to Bitcoin.
While several leading cryptocurrencies have demonstrated remarkable price surges, achieving over 100% Year-to-Date [YTD] gains, Litecoin has maintained a comparatively neutral stance, exhibiting a modest YTD increase of less than 4%. The coin’s price has displayed a consistent fluctuation within the range of $70.5 to $75.2 for nearly two weeks, followed by a confined trading range between $68 and $72 in the latter half of the month.
Although Litecoin has showcased considerable volatility, it remains premature to conclusively establish the correlation between the liquidating of assets by small wallet holders and its potential impact on Litecoin’s market value. As of the current writing, LTC has experienced a marginal recovery, trading at $74, reflecting a 6% increase in the last seven days.
Still, investors are cautioned to exercise vigilance and closely monitor developments, as the combination of Fear, Uncertainty, and Doubt [FUD] and the divestment by small wallets could introduce further uncertainties.
Litecoin Tops BitPay Payment Count
On a positive note, LTC has emerged as the favored cryptocurrency for payments on BitPay, the world’s largest crypto payment processor. It has asserted its dominance in real-world applications, with 34% of BitPay’s payment count by cryptocurrency, surpassing Bitcoin [BTC] and Ethereum [ETH].
BitPay recently announced that Litecoin holders can now replenish their Microsoft accounts using LTC coins. Additionally, Litecoin’s acceptance at Mecum Auctions, a platform specializing in the sale of collectible cars and vintage motorcycles, further reinforces its practical utility. BitPay supports various cryptocurrencies, including Bitcoin, Ethereum, Bitcoin Cash [BCH], Dogecoin [DOGE], Shiba Inu [SHIB], XRP, Dai, Binance USD, USD Coin, Wrapped Bitcoin [WBTC], Pax Dollar, and Gemini Dollar.