Litecoin (LTC) Rockets Up 14% in a Week, 6.8% in 24 Hours: Santiment Reveals Key Factors
Litecoin (LTC) has experienced a noticeable upswing, recording a weekly increase of approximately 14% and a daily gain of 6.8%.
The primary factor influencing this rise is the anticipated halving event in August, accompanied by a surge in on-chain transactions and active whale movement.
Litecoin (LTC), often referred to as ‘digital silver’ within the crypto community, has exhibited an impressive upward trajectory. From May 25, Litecoin’s value has climbed nearly 14%, shifting from $83.79 to a current level of $94.57. Furthermore, it has seen an intraday increase of 6.86%.
On-chain data analytics firm, Santiment, pinpoints three critical reasons behind Litecoin’s appreciating value. The most substantial of these is the forthcoming Litecoin halving event set for August.
For those unacquainted with the concept, a ‘halving’ is a scheduled event that cuts miners’ block rewards in half. At present, Litecoin miners earn 12.5 LTC for each new block mined. Post-halving, this reward will drop to 6.25 LTC.
Halving is a fundamental aspect of certain cryptocurrencies, designed to control inflation and increase scarcity over time. Initiated by Bitcoin’s enigmatic creator, Satoshi Nakamoto, the last LTC halving took place in 2019, with the next one slated for 2027.
Why the surge?
Apart from the upcoming halving, 2 other significant factors are fuelling Litecoin’s value surge. One is the volume of LTC on-chain transactions has reached a staggering two-year high which implies there has been increased network activity and liquidity.
Secondly, there’s been a marked increase in ‘whale’ activity, referring to the transactions made by entities holding substantial amounts of LTC. This is the highest recorded activity since 2023 commenced, pointing towards larger players taking positions or adjusting their holdings.
To top it, global payment gateway BitPay recently announced that Litecoin has achieved a new milestone among its users. LTC has now ascended to second place in terms of the most popular cryptocurrencies transacted via BitPay. BitPay as a result has announced a giveaway of $250 worth of Litecoin to a lucky winner.
Bottomline
These events together offer a comprehensive overview of the factors influencing Litecoin’s market performance. As the August halving event approaches and on-chain activities increase, it will be interesting to observe how Litecoin’s trajectory evolves in response.
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Filed under: Bitcoin - @ June 3, 2023 5:56 pm