Today’s price of LTC (Litecoin) is back in line with what it was at the beginning of November.
Indeed, after falling below $50 on 9 November, it has now risen again to $58, after also standing at $63 last Friday.
At the beginning of November, the price was $55, which is lower than it is now. However, on Monday 7 November it had risen as high as $72.
This is thus a positive moment for the price of LTC, given that, for example, the current prices of Bitcoin and Ethereum are still significantly lower than at the beginning of the month.
In other words, in the first seven days of November, LTC registered a very good +30%, only to lose 30.5% due to the collapse of FTX. Since then, however, it has rallied +23% in just two days, followed by -8%.
The reasons for Litecoin’s (LTC) rise
For the past few weeks, some positive news about Litecoin has been circulating that has certainly positively affected the price of LTC in recent days.
One of the most important ones is the new all-time record high for its hashrate.
Litecoin is based on Proof-of-Work like Bitcoin, so in that respect, it has a similar function. On November 11 it recorded its highest daily hashrate ever, at over 555 Thash/s. However, yesterday this value was 548, which is very close to last week’s record.
It is enough to think that at the end of August it was at 410 Thash/s, that is, it has increased by 35% over two and a half months. As for the Litecoin hashrate, this increase is definitely significant.
It is possible that this increase is due to Ethereum’s move to Proof-of-Stake, as many miners had to stop mining ETH and may have decided to take up LTC mining.
However, given that the current market value of Litecoin is similar to what it was at the end of August, this dynamic has led to a collapse in the profitability of LTC mining.
It is worth noting that the next halving of Litecoin will occur in the summer of next year, although usually this important step does not produce any increase in the value of LTC.
Even more interesting is the recent increase in the number of transactions processed daily by the Litecoin blockchain, from 100,000 to 125,000 in the days following the FTX collapse. This has led to an increase in revenue for LTC miners due to an increase in fees, the median of which has risen from $0.8 per transaction to nearly $1.5.
In other words, this still seems to be a good time for LTC miners, despite the decline in profitability.
Sentiment down despite Litecoin’s good performance.
Curiously, this good news is not followed by an improvement in sentiment, which even turns out to be declining.
To be fair, sentiment toward Litecoin has been declining for years now, so the recent increases may simply not have been able to reverse a long-term trend.
In fact, the average number of daily active addresses is not increasing, perhaps precisely because its use is not expanding at all.
It is therefore not surprising that the current price is 79% lower than it was a year ago, and 86% lower than the all-time high set in May last year, although it is 16% higher than it was a month ago.
The future of LTC
Litecoin’s future remains uncertain, even though among the longest-lived cryptocurrencies (it is 11 years old) it is by far one of the ones that fares best, after Bitcoin and XRP. It is enough to note that Ethereum is “only” seven years old.
In recent times, LTC has been one of the top 20 cryptocurrencies with the lowest volatility.
After the May collapse due to the implosion of the Terra ecosystem, its price had fallen to $64, which is a similar level to the one touched last week after the rebound following the FTX collapse.
Even as late as mid-June it had fallen to $43, which is a level that has never been touched since, and compared to which the current one is significantly higher.
Indeed, its price has been fluctuating between $43 and $64 for six months now, particularly within the range of $50 to $60.
