Collins J. Okoth
According to X’s on-chain analytics firm, IntoTheBlock, over 60% of Litecoin holders are now in profit. The profits come as altcoin has shown several signs of price rebound, gaining over 20% within the past few weeks. Litecoin spiked from around $75 one month ago to over $90 at the time of writing. The coin has also gained about 3.26% in the past 24 hours.
The current period of holders making profits is the highest it has been since April, when over 75% of LTC holders were in profit as the coin’s price skyrocketed. One trigger for the surge was the U.S. Commodity Futures Trading Commission declaring LTC as a commodity at the beginning of April.
However, at current prices, Litecoin investors are still at a loss considering the 2021 bull run when the coin hit above $400. The coin’s all-time high was $412, increasing its dominance and shifting investors’ interest from coins like DOGE during the bull run. According to CoinMarketCap, the current price is around 77% lower than the 2021 all-time high.
LTC gains memecoin status
The recent surges in Litecoin prices follow the announcement on the coin’s social media websites on November 14 that it had gained memecoin status. The simple post declared, ‘ I am now a memecoin,’ gaining traction from the crypto community.
Dogecoin posted to encourage the community to welcome LTC to the memecoin space. The memecoin also asked the community to help make a few memes for Litecoin, suggesting a ‘chibi mascot.’
After the announcement, the coin surged by over 15%, hitting above $85. Litecoin’s trading volume also surged by over 33%, reaching over $950 million, which accounted for about 0.31% of total crypto activity.
Litecoin’s announcement came during the surge among memecoins, including DOGE, PEPE, BONK, and more. Many memecoins joined the crypto market rally after Trump’s victory.
Bitwise Asset Management Head of Research Ryan Rasmussen talked about the surge, mentioning retail investors’ increased interest in memecoins. According to Rasmussen, memecoins offer a favorable entry point for small investors due to their small market cap and liquidity.
Litecoin could surge or bottom
Over 60% of LTC holders are now in profit—the highest since April.
Many of the holders still at a loss bought in 2021 and may sell as they break even. Could this create resistance, or will Litecoin push past and set new highs this cycle? pic.twitter.com/EY4iKrKss8
— IntoTheBlock (@intotheblock) November 18, 2024
IntoTheBlock speculated whether the altcoin would create a resistance level or push against the current price and reach new highs in the cycle. Recently, short-term Litecoin holders have shown increased demand for the altcoin. IntoTheBlock also revealed that the balances on short-term holder accounts were increasing, hitting a 31% rise as of November 12.
According to the on-chain analytics page, the increased balances usually precede a possible price spike. The page also noted a possible price bottom that led to investors accumulating more coins while anticipating a surge.
Notably, one of the things influencing the sentiment includes Litecoin gaining the interest of miners, with the Litecoin hashrate increasing to 1.35 PH/s and surging about 30% this year. Another is the October filing of the first-ever Litecoin spot ETF by asset management company Canary Capital.
