Litecoin News - Zgny Coin News

Positive signals for Litecoin investors

Marking the start of the altcoin season, altcoins in the top 25 on CoinMarketCap are starting to rally. At the time of writing, 23 out of 25 altcoins have positive weekly returns. Of these, Litecoin, ranked ninth in terms of market cap, has seen a weekly gain of more than 8 percent but is still 42 percent away from its ATH.

On-chain analysis from IntoTheBlock is signaling strong bullish sentiment among Litecoin investors, as prices recover, it is predicted that it could hit local highs. Currently, the big HODLers are holding around 50% and have evidence that the basis for the price to move higher, could enter a phase of price discovery. While moving closer to the ATH level will require more liquidity and volatility, for now the trading volume is already high enough to drive the price.

Based on trading volume on spot exchanges, there is an increase in demand and this could drive the price to almost $ 240. After Ethereum posted a daily gain of 5.11%, the rally of The altcoins have continued and this has fueled the inflow of investment in Litecoin. This increased cash flow and overall bullish sentiment are favorable environments for it to move higher.

Litecoin chart

There are other metrics that signal Litecoin’s bullish sentiment and their impact on the price, like average transaction volume data from Glassnode. Litecoin’s average transaction volume has just hit a 1-month high of $ 196,083,048, and this is a bullish sign as the amount of transaction value is large or above average is increasing. Another metric supporting Litecoin’s bull run is its actual capitalization.

Actual capitalization of LTC

This figure has the same meaning as the increase in transaction volume. Retail traders’ portfolios are likely to achieve double digit returns or higher when the price rises to ATH in the following weeks.

The price of LTC has increased 61.45% since the beginning of the year. When Litecoin’s price action is combined with its HODLing model, more than 50% of Litecoin HODLers have been holding tokens for over a year, then we can see that a lot of investors are believing in the long-term outlook. its. This could set the stage for a rise to Litecoin’s all-time high.

Litecoin’s daily active address has increased 6 times since 2020

Digital Silver has seen a massive increase in addresses active alongside other large-cap cryptocurrencies.

The number of active addresses on Litecoin, the ninth largest cryptocurrency by market cap, has grown more than sixfold in the past year, data from on-chain analytics service Glassnode shows.

David Schwartz, project director at the Litecoin Foundation tweeted.

“New Litecoin addresses added daily currently reach 100,000. This is a 5-fold increase from the previous 12 months (Figure 1).

Daily active LTC addresses increased more than 6 times in 12 months (Figure 2), from 50,000 per day to 300,000

Prices may be constrained, but utility value is not.”

The increase in wallet usage is accompanied by an increase in prices. Litecoin is currently worth over $ 13 billion and is trading at over $ 202 with a circulating supply of 66 million LTC at press time. This is a substantial increase from last year – which saw LTC drop to as low as $ 30 by May 2020.

But an adjustment could be made soon. As the image below shows, Litecoin trades below the 34 EMA (exponential moving average), a tool used by traders to determine market trends. A support exists at $ 195 – meaning a favorable level can see buyers step in.

LTC price chart

However, on-chain data from IntoTheBlock shows a neutral signal, meaning that Litecoin could see price action change between $ 195 and $ 200 in the coming weeks. The indicators for net growth and large volumes are trending up, but signals of focus and momentum indicate a downtrend.

Mimblewimble catalysts

A strong fundamental factor driving Litecoin’s growth is the upcoming Mimblewimble release. The update will bring better privacy, scalability, and speed to Litecoin, and will be integrated into its underlying code once it is reviewed and finalized.

According to a Litecoin Foundation post earlier this week, the code of the so-called MimbleWimble expansion block is now complete and ready for official evaluation by other Litecoin auditors (the developer behind Mimblewimble is David Burkett) .

Release following the launch of the MimbleWimble testnet in September 2020, targeting technical users. The less technical and user-friendly testnet will be made available to the public in the coming weeks.

Litecoin’s daily active address has increased 6 times since 2020

Digital Silver has seen a massive increase in addresses active alongside other large-cap cryptocurrencies.

The number of active addresses on Litecoin, the ninth largest cryptocurrency by market cap, has grown more than sixfold in the past year, data from on-chain analytics service Glassnode shows.

David Schwartz, project director at the Litecoin Foundation tweeted.

Price chart of LTC | Source: Tradingview

Mimblewimble catalysts

“Litecoin’s MimbleWimble is now codified.”

Litecoin completes the MimbleWimble code to scale and enhance privacy for LTC

The Litecoin Foundation has completed the code for its MimbleWimble Extension Block (MWEB), which enhances scalability and privacy for cryptocurrencies.

After more than a year of non-stop development, MWEB has now “perfected the code,” according to David Burkett, lead developer of Litecoin.

He added that the code is now ready for official testing by fellow developers. However, this process can take anywhere from a few weeks to a few months depending on the adjustment.

Once completed, the code will be incorporated into Litecoin’s main codebase. It will then be ready for node operators and miners to broadcast support signals. The announcement adds that MWEB activation sooner or later depends on the community.

What does MWEB offer?

The MimbleWimble Extension Block upgrade will improve the key features Litecoin is missing: fungibility and privacy. The MimbleWimble testnet launched in October 2020, and the code has been in combat testing for the past five months.

The protocol is named after a fictional Harry Potter spell that uses secret transactions. It allows senders to encrypt the amount of money sent using “blurring factors” while obfuscating the address. This greatly improves the privacy of the blockchain while simultaneously enhancing the scalability.

Litecoin founder Charlie Lee has focused on fungibility, scalability, and privacy over the past few years. He sees this as an important stage in the development of LTC.

Interchangeability is that certain items are interchangeable, for example 1 USD = $ 1. The same doesn’t apply to cryptocurrencies, as historical transactions are recorded on the blockchain. So money used for nefarious activities can be discovered in some way.

MimbleWimble solves this problem by using the expansion block. These are basically adjacent chains that are interconnected that run next to Litecoin’s main chain. This is an optional feature for users who want more privacy and an alternative to their LTC trading.

LTC price outlook

Litecoin may not get as much acclaim as other altcoins, but it is a solid cryptocurrency. LTC has been in or near the top 10 since 2011 when it was launched as an alternative to Bitcoin’s “silver” versus “gold”.

Historically, when BTC had a bull run, LTC followed. At press time, LTC is trading above $ 201 – up almost 2% on the week.

LTC / USD 3 months | Source: Tradingview

LTC is yet to return to its all-time high forming December 2017 – more than $ 350. However, it hit a 3-year high of $ 238 on Feb. 20. The price has risen 60% since the start of 2021.