Litecoin’s price rose by over 6.5% on May 15, reaching around $87.50. This increase in value occurred as the market assessed Litecoin’s entry into the flourishing non-fungible token (NFT) market. The recent advent of Litecoin’s own token standard, the Litecoin Ordinals Protocol further contributed to the rise in LTC’s value. This protocol allows people to create NFTs atop the base blockchain using an experimental BRC-20 token standard, similar to Ethereum’s ERC-20.
Litecoin’s network activity has seen an upsurge following the introduction of the LTC-20 token standard. The total number of daily on-chain transactions reached a record high of over 576,700 on May 9. Although the number of daily transactions decreased to 511,290 as of May 14, they remain at higher levels than historical standards. Additionally, the total number of active addresses on the Litecoin network increased substantially after the LTC-20 token standard addition.
On the other hand, the number of Litecoin whales holding more than 1,000 LTC has decreased, indicating a lower interest in the LTC-20 euphoria among these entities. This comes as more network activity indicates rising demand for LTC which may have influenced Litecoin’s recent price gains.
From a technical standpoint, LTC appears to have been breaking out of its multi-month descending channel range to the upside. As of May 15, LTC/USD was testing the channel’s upper trendline as support, which, if done successfully, could lead the price toward $130 by August, up about 50% from current price levels. Otherwise, Litecoin price risks returning inside the channel range to eye a run-down toward the lower trendline. That means a fall toward $25, down approximately 70% from current price levels.
It is important to note that this article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making any financial decisions.