Are Litecoin holders in a better position than Ethereum investors?

As a seasoned crypto investor with a keen interest in the market trends, I find the recent surge in activity on Litecoin (LTC) intriguing. The 75% increase in active addresses on Litecoin’s network, surpassing Ethereum (ETH), is a significant development that has caught my attention.

As an analyst, I’ve observed that it is uncommon for Litecoin (LTC) to outperform Ethereum (ETH) in any aspect. Yet, on the 6th of June, there was a striking increase of approximately 75% in the number of active addresses on Litecoin’s network.

As a researcher analyzing data from IntoTheBlock, I’ve discovered that there was a significant difference of over 100,000 between certain network metrics for Litecoin. This substantial gap amounted to a total of 602,720, marking the highest level of activity on the Litecoin network since January.

Are Litecoin holders in a better position than Ethereum investors?

After Cardano, Litecoin takes Ethereum out

In simpler terms, the number of distinct wallets that have completed transactions successfully on a particular cryptocurrency’s blockchain has been higher for this coin compared to Cardano (ADA) in recent days.

It’s worth noting that the majority of transactions originated from wallets holding relatively small amounts.

In other words, individuals possessing LTC with a value between $10,000 and $10 million weren’t overlooked in the recent analysis by IntoTheBlock regarding X.

“The majority of the growth can be attributed to relatively small transactions under $10, but there’s also a discernible uptick in the number of transactions across all monetary ranges.”

Here, it’s worth noting that the rise in network activity did not trigger a hike in LTC’s price. At press time, Litecoin was valued at at $83.52, following a fall of 1.8% in the last 24 hours. Ethereum, on the other hand, was trading at $3,791, with the altcoin depreciating slightly too.

Additionally, AMBCrypto looked at Litecoin’s market cap to thermocap ratio. This metric measures a cryptocurrency’s valuation relative to the total security spend by miners. When the market cap to thermocap ratio spikes, it means the coin is trading at a premium when compared to miner spend.

In this instance, the price could be termed overvalued.

Historically, as shown below, an extremely high reading of the metric causes a correction. However, at press time, the ratio was 0.00000003. This was a low reading, compared to periods when Litecoin has been overheated.

Are Litecoin holders in a better position than Ethereum investors?

Are LTC and ETH at a discount?

Simply put, LTC may be trading at a discount. Should the market return to a highly bullish state, the price of LTC could move past $100 from its press time position.

To confirm this thesis, AMBCrypto examined the Market Value to Realized Value (MVRV) ratio. This metric track the profitability of holders in relation to coin valuation.

At press time, Litecoin’s 30-day MVRV ratio was 13.35%, indicating that the average holder would make profits if they sell. However, the gains might be high enough to trigger widespread profit-taking.

For Ethereum, the 30-day MVRV ratio was 4.69%. While this suggested that ETH and LTC may be in similar spots, it also addressed the notion that Litecoin holders might be in a better position than their Ethereum counterparts.

Realistic or not, here’s LTC’s market cap in ETH terms

In the coming months, Ethereum’s value could exceed $4,000, while Litecoin may break through the significant barrier of $100.

2024-06-08 10:15

After Cardano, Litecoin takes Ethereum out

Are LTC and ETH at a discount?

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