“Slow and steady wins the race,” as the old adage goes. In fact, it still applies to a lot of things. Many people associate it with Litecoin when discussing it in the context of cryptocurrencies. However, the “digital silver” has been defying expectations recently with impressive rallies and price action.
This season, Litecoin has made some impressive gains. This, despite the fact that it was not unaffected by the flash crash a few days ago, and actually fell by 21%.
Nonetheless, as consolidation took hold of the market, there were some encouraging signs for LTC holders and investors. Is it possible that Litecoin will emerge stronger as a result of this consolidation?
Advancing development-focused growth
Renewed market momentum, as well as increasing client demand for smart contracts and non-fungible tokens [NFT], have pushed Litecoin towards a decentralized token creation platform – OmniLite.
According to the Litecoin Foundation’s blog, OmniLite is an open-source platform dubbed the “Ethereum Killer,” which will introduce smart contracts, DAOs, tokenized assets, and NFT functionality to the Litecoin network.
In addition, Litecoin has made inroads in other areas of development. Indeed, the implementation of LTC’s MimbleWimble Extension Blocks (MWEB) upgrade is expected to improve network fungibility and privacy.
On-chain activity is extremely high.
LTC’s on-chain activity has also been quite strong recently, as evidenced by a sustained increase in active addresses and daily active addresses. Consider this: despite the aforementioned crash, there were still around 390k addresses available at the time of publication. Litecoin’s ATH is currently around 485k, which is significantly higher than ETH’s.
Furthermore, according to a Santiment report, Litecoin’s active addresses moving average is still on a year-long uptrend and is on the verge of overtaking Ethereum. Bitcoin, on the other hand, remains the market leader. Surprisingly, due to ETH’s high fees, LTC has been competing with Ethereum’s daily activity as well.
On the other hand, LTC’s network realized profit and loss saw a significant drop. That, on the other hand, could be indicative of the market shaking off weak hands. Furthermore, the MVRV 30-day for LTC suggested that the current low price could be a local bottom, as the metric was mostly neutral. This could be beneficial to the cryptocurrency’s price in the near future.
Another encouraging sign was Litecoin’s higher lows on the 4-hour chart. It suggested that, despite wider market consolidation, the price has been pushing up.
As a result, it appears that Litecoin has a good chance of rallying again. Long-term investors and whales would need to step up, however, for LTC to make a stronger recovery towards its May highs. If and when that occurs, it may be appropriate to discuss any such reversal. Whether or not such a possibility exists.