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As the old adage goes, “slow and steady wins the race.” In actuality, it still applies to a variety of situations. When discussing it in the context of cryptocurrency, many people associate it with Litecoin. The “digital silver,” on the other hand, has recently defied predictions with stunning rallies and price movement.
Litecoin has made some incredible progress this season. This despite the fact that it was not unaffected by the flash crash a few days prior, falling by 21%.
Nonetheless, as consolidation took hold of the market, there were some encouraging indicators for LTC holders and investors. Is it possible that Litecoin will emerge stronger as a result of this consolidation?
Pushing development-centric growth
Renewed market momentum, as well as increasing customer demand for smart contracts and non-fungible tokens [NFT], have pushed Litecoin towards a decentralised token production platform – OmniLite.
According to the Litecoin Foundation’s blog, OmniLite is an open-source platform dubbed the “Ethereum Killer.” On the Litecoin network, it will introduce smart contracts, DAOs, tokenized assets, and NFT capability.
Litecoin has also made strides in other areas of development. Indeed, the MimbleWimble Extension Blocks (MWEB) upgrade for LTC is expected to increase network fungibility and privacy.
Strong on-chain activity
LTC’s on-chain activity has also been quite strong recently, as evidenced by a continuous increase in active addresses and daily active addresses. Consider this: despite the aforementioned crash, there were still roughly 390k addresses available at the time of publication. Litecoin’s ATH is currently about 485k, which is significantly higher than ETH’s.
What’s more, Litecoin’s active addresses moving average is still on a year-long uptrend and close to flipping Ethereum, according to a Santiment report. Bitcoin, however, is still the leader. Interestingly, because of ETH’s high fees, LTC has been rivaling Ethereum’s daily activity as well.
On the contrary, LTC’s network realized profit and loss also saw quite a dip. That, however, could be suggestive of the market shaking off weak hands. In addition to that, the MVRV 30-day for LTC suggested that its low price could be a local bottom as the metric was mostly neutral. This can be good for the crypto’s price in the near future.
Another encouraging hint was Litecoin’s higher lows on the 4-hour chart. It implied that, despite greater market contraction, the price has been going up.
As a result, it appears that Litecoin has a decent probability of rebounding again. Long-term investors and whales would need to step up, though, for LTC to make a bigger return towards its May highs. If and when such occurs, it may be appropriate to discuss any such reversal. Whether or not such a possibility exists.