On-Chain Metrics for LTC Surge as Halving Event Approaches
As the halving event for Litecoin (LTC) draws closer, the cryptocurrency has witnessed a significant increase in on-chain activity, indicating growing interest among investors and traders. Crypto trader and analyst Ali recently shared on Twitter that the LTC network experienced a substantial spike in active addresses in the past few days.
Ali’s tweet revealed that over 832,000 LTC addresses were actively interacting on the network as senders or receivers. Shortly after, Santiment, a blockchain intelligence firm, also tweeted about additional positive on-chain metrics for LTC.
In its insights report, Santiment highlighted the expectations of many traders and investors that the upcoming halving event will have a positive impact on LTC’s price. The report noted that discussions surrounding LTC began to rise around May 1, 2023.
During the following two weeks, online forums and posts reflected an increased interest in the event, with traders frequently discussing the approaching halving. Concurrently, the on-chain transaction volume started to climb.
According to Santiment, the surge in active addresses, as mentioned in Ali’s tweet, reached a level not seen in over a year. However, in the past five days, the number of active LTC addresses has stabilized. Santiment predicts that the count may rise again in the near future.
Santiment also analyzed the 30-day and 365-day MVRV (Market-Value-to-Realized-Value) ratios, which currently indicate that average traders are in a profitable position. The ratios being above 0% suggest that traders are thriving. Nevertheless, Santiment advised caution, suggesting that those looking to buy LTC may want to wait for these ratios to lower before considering long positions on the altcoin.