Litecoin Analysis
Please note that this letter is not intended as financial advice.
The Litecoin network is still growing and new investors continue to come in high rates, despite the slowdown in May 2021. It is a different scenario than the 2018 bear market.
Also, the total transfer volume is still in high figures for LTC, indicating the network continue to be used a lot.
The SOPR metric indicates that market is selling in a loss since May. However, analyzing the Coin Days Destroyed metric we can also say that the long term investor is not selling now.
From BTC stats, we can see that the fees are very low. When BTC fees increases, it also increase the attractiveness of LTC.
The decline of hashrate was one of the main drivers of the recent market downturn. As China imposed and enforced restrictions on mining, the hash rate fell down more than 50% from the max. It only started to recover in July, as mining is moving to other countries. Bitcoin hashrate recovery is important for LTC prices.
LTC MimbleWimble feature is advancing and it is expected that it will be activated in the end of this year. This is a significant milestone for Litecoin.
LTC is already one of the most reliable crypto networks and it is widely integrated with exchanges and, recently, Venmo. It will be interesting to see in Paypal quarter results how was the adoption of crypto service in Venmo.
Fintechs, digital banks, innovative companies as Visa and Mastercard, will continue to embrace crypto and be the front end that will enable more users to join. Crypto is a game of patience and this developments take time to be implemented. I am optimist about the future.
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