- Litecoin’s recovery is strongly supported by strong address growth.
- Whales offer LTC support as selling pressure attempts to erase recent gains.
Litecoin [LTC] it was one of the top trending coins between January 17 and 24, and for good reason. It has outperformed many major coins in recent months, including Bitcoin [BTC] in key metrics, but what does this mean for your future?
The last 12 months have been really tough for the cryptocurrency market, but Litecoin has become one of the best. This is particularly evident in its recovery, especially from the 2022 lows. It has outperformed Bitcoin and Ethereal [ETH] and it’s still relatively underrated.
For example, LTC managed to rally 146% from its 2022 lows to recent levels. Meanwhile, BTC has only managed to recover by about 49%. Part of the reason for this is strong adoption.
Litecoin adoption accelerates – @bitcoinista https://t.co/fPTgVnHZ59
—Litecoin (@litecoin) January 24, 2023
The number of Litecoin addresses It has grown steadily over the past 12 months despite going through a tough bear market. The total number of addresses was 171,530,374 as of January 24. This means that approximately 51 million addresses were created during this 12-month period.
Source: Glassnode
Despite this, Bitcoin added just over 88 million new addresses in the last 12 months. This means that it surpassed Litecoin in this segment. But how does this explain the better performance?
Well, the LTC advantage could be due to higher demand for the whales. Investors are more likely to flock to a currency that is perceived to be undervalued and has more potential gains ahead of it.
The Underrated Perspective on Litecoin
LTC is still trading less than $100 despite recovery. So a 10X gain could be more likely or easier than a 10X BTC rally. This could be the reason for the increased interest in Litecoin, especially from whales.
Speaking of WhalesLTC saw a large spike in transaction counts whale above $1 million on January 23-24.
Source: Feeling
The recent rise was accompanied by an increase in the social domain. Such a large increase in the whale transaction count should trigger a sell-off under normal circumstances.
As of press time, LTC’s price action put up a defensive wall, preventing further price declines. In other words, the whales could be accumulating and thus scaring off the bears. Litecoin’s MVRV ratio registered a powerful increase in the last 24 hours.
Source: Feeling
Realistic or not, here it is LTC market capitalization in terms of BTC
The MVRV ratio suggested an increase in profitability for traders, especially those who recently bought before the price started to rise in the last 24 hours. This is despite a slight drop in daily active addresses.
Perhaps this is a sign that the whales remained bullish on LTC’s prospects this year at press time. If this trend continues, then Litcoin could have a strong performance this year.
