“The race wins slowly and steadily,” is an old saying. In fact, it still holds true for many things. When talking about it in the context of cryptocurrencies, many have often associated it with Litecoin. However, the “digital silver” has recently challenged the notion with its impressive rallies and price moves.
Litecoin has made some impressive gains this season. This is despite the fact that it was not untouched by the flash crash a few days ago and even decreased by 21%.
However, as consolidation hit the market, there were some positive signs that gave LTC owners and investors hope. So is there any chance that Litecoin will emerge stronger from this consolidation?
Drive development-oriented growth
Renewed market dynamics and increasing customer requirements for smart contracts and non-fungible tokens [NFT] have Litecoin pushed towards a decentralized token creation platform – OmniLite.
According to a Blog from the Litecoin Foundation, OmniLite is an open source platform known as the “Ethereum Killer”. It will introduce smart contracts, DAOs, tokenized assets and NFT functionality in the Litecoin network.
In addition, Litecoin has advanced elsewhere on the development front as well. In fact, the network is expected to provide more fungibility and data protection through the implementation of LTC’s MimbleWimble Extension Block (MWEB) upgrade.
Strong activity in the chain
LTC’s on-chain activity has also been quite heavy lately – a continued surge in active addresses and daily active addresses seemed to indicate this. Consider the following – Despite the crash noted above, there were around 390,000 addresses as of press time. In fact, Litecoin’s ATH is around 485k, a number that is much higher than ETH’s currently.
In addition, the moving average of Litecoin’s active addresses is still in an upward trend for years and, according to a. about to flip Ethereum Mood report. However, Bitcoin is still the leader. Interestingly, due to the high fees charged by ETH, LTC also competes with Ethereum’s daily activity.
On the contrary, the realized gains and losses of the LTC network also showed a significant decrease. However, this could indicate that the market is shaking off weak hands. Additionally, the 30-day MVRV for LTC indicated that its low price could be a local low as the metric was mostly neutral. This may be good for the price of the crypto in the near future.
Litecoin, which hit higher lows on the 4-hour chart, was another good sign. It suggested that the price has risen despite broader market consolidation.
Ergo, Litecoin seems to have a good chance of recovering. However, for a stronger rebound towards its May highs, LTC would need long-term investors and whales to rise. When that happens, maybe it is time to talk about such flips. Whether or not such a possibility is near.