Litecoin (LTC) Returns to Multi-Cycle Lows as New Demand Emerges
Despite dropping to multi-cycle lows, Litecoin shows emerging demand through Japanese lending services and increased payment transaction share.Summary
Litecoin (LTC) has declined nearly 60% from its peak, reaching lows seen in previous market cycles, though underlying demand signals suggest support.
New demand indicators include SBI VC Trade in Japan expanding lending services to include LTC, and CoinGate data showing LTC accounts for 17.7% of its payment transactions, up from 16.4% in December. Furthermore, on-chain signals are positive; Litecoin's optional privacy layer, MWEB, set a new record for peg-ins, indicating growing demand for private transactions. Additionally, a divergence exists where LTC's price has fallen significantly, but its average on-chain transaction value has continued to rise, suggesting accumulation activity by investors viewing the sell-off as an opportunity.
However, this emerging demand is currently insufficient to counteract broader market selling pressure, and with LTC trading around $60, a recovery is expected to be challenging.
(Source：BeInCrypto)