The Reasons Behind LTC’s 30% Surge and 6-Month High
Litecoin has decoupled and is already exhibiting indications of more rise before its third halving event.
Amidst the gloomy attitude caused by FTX’s demise and the next turn of events, the crypto market rose to a market valuation of over $830 billion, a rare occurrence. Nonetheless, Litecoin’s resurgence performed better than the majority of leading cryptocurrencies.
The “digital silver” peaked at $81 on November 23, with a market capitalization of nearly $5.64 billion. The last time it traded at this level was in May. It reached a six-month high.
Shark Stockpiling
Before the first significant price increase, “sharks” maintained a robust accumulation trend, accumulating a seven-month supply high. This group of addresses holding 1,000 to 100,000 LTC coins has amassed more than $43 million over the previous two weeks, as reported by Santiment, a famous crypto analytic tool.
⚡️ #Litecoin's price surge may have shocked some of you, but the large address accumulation has been the key to watch. In the past 2 weeks, addresses holding 1k to 100k $LTC accumulated $43.4M in coins en route to the first price jump above $80 since May. https://t.co/qkff6FCA1gpic.twitter.com/DM50SjOcAY
A larger cohort of LTC whales, owning between one million and ten million LTC tokens, have also increased their holdings from 2.7 million. This accelerated the price movement of the cryptocurrency asset.
At the beginning of the year, the value of Litecoin was close to $150. Nonetheless, further market pessimism caused the crypto-asset to drop below $42 in June. Despite the improvement, the price remained below $55 for most of the year, just surpassing it twice in November.
After erstwhile Ripple partner and p2p payment company MoneyGram announced the creation of a new service to buy, sell, and store the crypto-asset, Litecoin saw its first upward trend.
Halving LTC
The divergence from the market-wide decline occurred eight months before the highly anticipated halving event, which would reduce Litecoin’s rate of supply increase by 50%. In August 2023, after the third mining reward halving, the incentives awarded to LTC miners for recording transactions on the blockchain will be reduced from the current 12.5 LTC per block to 6.25 LTC per block.
It is noteworthy that Litecoin’s narrative shifted from gloomy to positive in the months leading up to its 2015 and 2019 half cycles.
