DeFi
More than $2.85 billion in $100,000 transactions were processed
Litecoin has been under intense selling pressure in the past few months. After peaking in April, the coin has been on a downward trend, if we consider the layout of the daily chart.
Spot rates are strong. So far, LTC is up 20% from its July lows and continues to trim its losses. The price expansion also comes amid other positive developments, at least as far as on-chain developments are concerned.
Is Litecoin a haven for whales?
According to IntoTheBlock, there has been a significant increase rise in on-chain transfers on the proof-of-work network. As of July 12, the network had processed $2.85 billion in transactions, each with an average value of at least $100,000.
This level represents more than half of the network’s market cap. More importantly, Litecoin is doing much better than major altcoins. Data from IntoTheBlock shows that even though Dogecoin has a market cap about 3x that of Litecoin, it only receives $590 million in large transfers per day.
This huge difference means that Litecoin is attracting more whales, likely drawn by the network’s security and low fees. Litecoin has not changed its original mandate as a complement Bitcoin remains.
It operates as a proof-of-work network powered by miners who must commit to purchasing new equipment and updating it regularly to be competitive.
As of July 13, Litecoin had a hash rate of 1.01 PH/s, according to CoinwarzDespite Litecoin’s halving in 2023, more and more miners are unfazed by the drop in rewards and continue to secure the network.
MWEB Private Transactions Surge, LTC Unfazed by Short-Term Price Fluctuations
The rise in Litecoin transactions also comes amid growing adoption of Mimble Wimble (MWEB). According to data from MWEBexplorer, MWEB transactions have double over the past few days. This increase indicates a growing preference for private transactions among Litecoin users.
Through MWEB, users can send private transactions. Although MWEB transactions are more expensive, costing $0.00267 compared to $0.0008 for regular transactions, they are relatively cheaper than Bitcoin transactions. According to YChartsThe average Bitcoin transaction fee now stands at $1.487, up from $1.163 recorded yesterday.
With more transactions being recorded on Litecoin, LTC holders are also not fazed by the price drop; 71% of them are in the red. As of July 12, data from IntoTheBlock revealed that 77% of LTC holders have held their coins for over a year. Only 6% have purchased LTC in the last month.
Main image of DALLE, chart from TradingView