Litecoin sets a new milestone despite a huge drop in liquidity
Despite a Huge Drop in liquidity, Litecoin sets a new milestone. Once again they’re celebrating maintaining their transactions consistency on BitPay with the new update.
Litecoin is emerging as the top coin in the crypto world as it even surpassed Ethereum and other altcoins. After Bitcoin, the Litecoin Network appeared as the Second best Crypto with the highest number of transactions in the last six months.
In February, Litecoin continued to maintain its consistency by accounting for 23.71% of all transactions on BitPay. With this Litecoin was able to achieve another milestone. However, this did not in any way kept its market value from tumbling down as the network witnessed the worst bearish trend in 2023.
The huge liquidity drop of Litecoin
In the last 10 days, the value of Litecoin has decreased by 30%. Since the beginning of March, Litecoin experienced a significant decline in its liquidity.
Due to the extensive Bearish trend, the selling pressure has become more intense for LTC. Even if it was for a short time the heavy selling pressure dropped below the 200-day moving average. Despite that, it managed to bounce back but its price is still in its oversold range.
Moreover, this is not the only thing that is showing a downtrend for Litecoin even though its demand has been low this week, similar to the performance of other top cryptocurrencies. Specifically within the past 24 hours., the Binance and DYDX funding rates have been notably low.
Litecoin even witnessed a brief uptrend in its development activity. After that, it has been going through the same monthly dips. This could be the reason that negatively affected the investor’s sentiment. In addition by the beginning of March, the weighted sentiment also hit a downtrend.
Investors’ perception of LTC being oversold was confirmed by a significant increase in Litecoin’s weighted sentiment over the last two days, despite the cryptocurrency’s shortcomings in development activity and significant price discounts.
On the contrary, the hash rate of Litecoin still shows positive signs as it has been on an upward trend for the past few months. In February it reached a peak of 764 TH/s. it has been improving ever since despite a drop below 650 TH/s.