Assessing Litecoin’s state ahead of its fourth halving
- Whale activity and the total number of holders registered an uptick over the last few weeks.
- LTC’s open interest increased, and its funding rate was also high.
The Litecoin [LTC] halving is just over 11 days from the time of writing, and the blockchain has already been witnessing an uptick in activity. The hype has also allowed the coin to move its price marginally up over the last 24 hours.
Read Litecoin’s [LTC] Price Prediction 2023-24
While halvings are generally followed by a price uptick, several are expecting LTC to boom in the days to come. But should investors expect anything massive from the coin before the event happens?
A look at Litecoin ahead of its fourth halving
Nicehash’s countdown pointed out that Litecoin’s fourth halving is just 11 days away from the time of writing this article. As the hype around LTC increased, the blockchain also registered increased activity in terms of accounts.
Santiment’s recent tweet revealed that in the last 24 hours, 1,185 more addresses have been created that own at least 100 LTC, suggesting high accumulation ahead of the major event.
🗲 #Litecoin‘s upcoming #halving on August 2nd is still bringing increased trader enthusiasm. In the past 24 weeks, as more have become aware of it, 1,185 more addresses have been created that own at least 100 $LTC. Most expect this to be a #bullish event. https://t.co/r52R73DkiA pic.twitter.com/LcaFyBJGhS
— Santiment (@santimentfeed) July 21, 2023
Not only that, but as per Santiment’s chart, whale activity also increased over the past few weeks, as evident from the rise in its whale transaction counts. Additionally, the total number of LTC holders also went up sharply.
The hike in the metric suggested that investors’ confidence in the coin was high.
Source: Santiment
Litecoin mining industry’s state looks interesting
While network activity was on the rise, the same was not true for the blockchain’s mining industry. Coinwarz’ chart revealed that Litecoin’s hashrate registered a decline over the last week.
A similar declining trend was also seen on LTC’s difficulty chart, suggesting an outflow of miners from the network. However, the surprising thing was that this happened at a time when miners’ fees were increasing along with the coin’s price, which generally attracts new miners.
Source: Glassnode
Mentioning LTC’s price action, it gained bullish momentum in the last 24 hours as its value increased by over 2.5%. At press time, it was trading at $94.48 with a market capitalization of more than $6.9 billion.
The hike in price can result in an increase in the aforementioned metrics, as it would mean more profits for miners. As the halving date is closing in, several in the crypto community have high expectations for Litecoin.
As per Shan Belew, a popular Twitter user who posts updates related to the Litecoin ecosystem, he mentioned in his latest tweet that, as per his findings, Litecoin’s price can reach the $30,000 mark.
Oh sh*t. I had the $625k – $1.5M targets on the chart and was looking at how this market structure for Bitcoin looked just like 2015-2017 cycle. So I overlaid the fractal and sure enough it was spot on with @CathieDWood Bitcoin targets. This could occur as early as May 2025.… pic.twitter.com/fcmJuex2qJ
— Shan Belew Ⓜ️🕸 (@MASTERBTCLTC) July 20, 2023
How much are 1,10,100 LTCs worth today?
Though whether the price actually rises to that mark is something only time can answer, a look at LTC’s derivatives market gave a bullish notion. For instance, the recent uptrend was accompanied by a rise in Open Interest.
LTC’s Binance funding rate was also high, reflecting its demand in the derivatives market.
Source: Santiment
