- Litecoin (LTC) has experienced an impressive upward trajectory, surging by nearly 14% in a week and 6.8% in the past 24 hours.
- On-chain data analytics firm, Santiment, identifies three key factors behind Litecoin’s surge: the upcoming halving event in August, increased on-chain transactions reaching a two-year high, and a notable increase in whale activity.
- The surge in Litecoin’s value has significant implications for South African investors, highlighting the growing prominence of LTC and its potential as an investment opportunity in the crypto market.
Litecoin (LTC), often referred to as ‘digital silver’ in the crypto community, has been on an impressive upward trajectory. Over the past week, LTC’s value has surged by nearly 14%, climbing from $83.79 to its current level of $94.57. Additionally, it has experienced a significant intraday increase of 6.86%.
According to on-chain data analytics firm Santiment, there are three critical factors behind Litecoin’s appreciating value. The most substantial of these is the forthcoming Litecoin halving event, scheduled for August.
Halving is an event where miners’ block rewards are cut in half. Currently, Litecoin miners earn 12.5 LTC for each new block mined, but after the halving, this reward will decrease to 6.25 LTC. Halving is a fundamental aspect of certain cryptocurrencies, aiming to control inflation and increase scarcity over time. Litecoin’s last halving occurred in 2019, with the next one anticipated in 2027.
Apart from the upcoming halving, two other significant factors are fueling Litecoin’s value surge. Firstly, the volume of on-chain transactions in LTC has reached a staggering two-year high, indicating increased network activity and liquidity.
Secondly, there has been a notable increase in “whale” activity, referring to transactions made by entities holding substantial amounts of LTC. This surge in whale activity is the highest recorded since the beginning of 2023, indicating that larger players are either taking positions or adjusting their holdings.
Adding to the positive momentum, global payment gateway BitPay recently announced a significant milestone for Litecoin among its users. LTC has now risen to the second-most popular cryptocurrency transacted via BitPay. To celebrate this achievement, BitPay has announced a giveaway of $250 worth of Litecoin to a lucky winner.
The combination of the upcoming halving, increased on-chain transactions, whale activity, and the recognition by BitPay has propelled Litecoin’s surge in value. These factors have significant implications for the South African market, as Litecoin gains prominence and attracts more attention from investors and users alike.