While the global crypto market struggled to keep up with the macro economic trends, Litecoin managed to send waves across the sector with the launch of its LTC-20 standard.
Litecoin (LTC) saw an almost 16% jump this week making its way in the 10 best-performing crypto assets. LTC traded around the $92 mark as the coin’s transactions surge by more than 500%.
For many, the recent launch of the LTC-20 standard — a notable improvement to the Litecoin ecosystem — is behind the new lease of life that Litecoin is enjoying. There is optimism that this new update will continue to herald positivity for Litecoin, but some analysts don’t see it that way.
What is the LTC-20 standard?
The LTC-20 standard, branched from the BRC-20 standard. It is a Litecoin token standard that allows developers to create tokens that can function with the network and possess built-in smart contracts.
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The community called it “a fun experimental standard demonstrating that you can create off-chain balance states with inscriptions.” Built on Litecoin Ordinals Protocols, the LTC-20 token standard has a maximum supply of 84 million coins.
Launched on May 1, the LTC-20 standard saw decent adoption from the global Litecoin community. In that timeframe, the new wallets created on the LTC network have increased remarkably.
Users Flock to Litecoin
The recent adoption of the LTC-20 standard has led to an influx of users on Litecoin. Reports, sugest that the Litecoin Daily Active Addresses (DAA) — a metric for monitoring the daily number of unique wallet addresses that conduct transactions on the network — increased by more than 200% in May.
In addition, data from Santiment showed that the number of wallet addresses also surged from 237,000 to more than 832,000 early in May.
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Furthermore, Litecoin conducted more than 576,000 transactions daily, almost closing down on Bitcoin’s 598,000 daily transactions. The numbers marked five times the average amount of transactions on the blockchain at the beginning of the year.
These data signify an increasingly growing demand for the LTC-20 standard. Unsurprisingly, it has led to actions and reactions in the ecosystem.
The Impact so far
Crypto whales have gravitated toward the LTC-20 standard quickly. Over $1 million in LTC transactions increased from 9 to more than 600 within the last four trading days.
In addition, there is a bullish price prediction for LTC.
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Data from Global In/Out of Money infers that the price could amount to $120 ahead of the impending halving event. LTC’s halving is a networking event that occurs every four years, just like that of BTC. The event will lessen miner rewards by 50% and increase deflationary status.
Based on past events, halvings have increased price as total supply decreases and deflation increases. The August 2015 and 2019 halving events occurred after a chaotic LTC price cycle – a price pump, significant correction, price bottom, and a recovery to a local top.
It has been predicted that for the positive forecast to occur, LTC must clear the initial resistance, which stands at $105. However, the fact that 101 million investors bought 5.83 million LTC at the average price of $105 may impede this.
Regardless, if the positive price prediction for LTC happens as expected, the bulls can sufficiently push for $121. The bears could rebut this if LTC suddenly backtracks below $90.
With its low transaction cost and speedy confirmation rate, LTC is one of the most in-form cryptocurrencies. It is, therefore, no surprise to see experts make predictions on the coin.
Analysts Air their Opinions
TradingBeasts predicted that LTC would reach a maximum price of $102.86 by December with a minimum price of $66.4 in June. Wallet Investor opined that the lowest and highest prices would be $94 and $214.84 and, at its best, could amount to $280.
For Long Forecast, LTC would start at $73 and stay below $100 until August. After that, fluctuations would be expected to occur, but the crypto would reach $130 by year-end. Coin Price Forecast had positive predictions. It forecasted impressive momentum that would move LTC to $221.30 by the middle of the year and $235.2 by the end of the year.
Overall, most experts have differing views on LTC in terms of fluctuation. However, most forecasts have similarities in the premise that the coin would finish 2023 with a higher price.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.