High hashrate and minimal fees give Litecoin a reputation as a good alternative to Bitcoin. However, Litecoin’s price volatility relative to Bitcoin has weakened, as reflected in the declining LTC/BTC ratio.
Litecoin (LTC) has seen a notable spike in high-value transactions on the network over the past four weeks, indicating increased interest from large investors.
Earlier this month, Santimento noted that the network had been tracking “consistently higher-than-normal levels of whale activity” since the last week of August amid heightened social dominance.
According to data from on-chain resource IntoTheBlock, transactions over $100,000 in the past seven days now amount to $20.45 billion. This number is noteworthy, especially when compared to Ethereum’s $24.95 billion during the same period.
Source: Into the Block
The data also shows that the number of these daily large transactions increased from about 830 in the last week of August to more than 1,000 in the first week of September. For the past seven days, this number has remained above 850, reaching 978 on September 17th.
The rapid increase in high-value transactions indicates increased activity by large holders such as institutional investors, which may affect trends in the spot market. It also points out that market liquidity could increase, leading to more stable prices and lower volatility in the short term.
Network health: hashrate and transaction fees
On the network side, Litecoin continues to show strong fundamentals. Hashing capacity within the network has been trending upwards of 1,000 trillion hashes per second since September 14th.
According to the latest data, the hash rate of the Litecoin network was 1.19 PH/s with a block height of 2,759,493 and a difficulty level of 41,089,116.87.
Source: Coinwarz
This robust hash rate increase is a positive sign for the overall health and security of the network and further strengthens confidence in the network’s resiliency against attacks.
Additionally, Litecoin maintains its position as a low-cost transaction network, supporting the narrative that LTC is the “silver” to Bitcoin’s “gold”.
Average daily trading fees have remained consistently below 0.0001 LTC (less than $0.01) throughout the year.
Source: Into the Block
Such low transaction fees make it an attractive option for users seeking fast and cost-effective transfers, especially during periods of congestion on other networks.
Litecoin’s high processing speed also helps minimize the threat of double spending, making it ideal for payments. A recent analysis by CoinGate found that Litecoin accounted for 12.3% of payments in August, second only to Tron and Bitcoin.
Correlation between LTC price fluctuation and BTC
Litecoin (LTC) is trading at $65.95, up 4% over the past 7 days. Despite strong network and transaction metrics, Litecoin has struggled compared to Bitcoin.
Read Litecoin (LTC) price prediction for 2024-2025
The LTC/BTC ratio is on the decline, indicating poor performance compared to mainstream cryptocurrencies.
Source: TradingView
Furthermore, the 30-day correlation between Litecoin and Bitcoin has increased from 0.46 on September 6th to 0.51 at the time of writing. This correlation, which is typical for many altcoins, suggests that LTC’s price movements are influenced by Bitcoin rather than its own catalyst.
Previous: Shiba Inu no Me 75-day range breakout: Is a 110% rise possible now? Next: Will Binance Coin Rise? Active addresses and liquidations suggest that…
Source link
