Litecoin reached the 12 million transaction milestone in the last 30 days as a growing cohort of users, speculators and holders find common ground.
The milestone comes at a time when price-action for the 13-year old digital commodity has been subdued during an extensive, multi-year period of accumulation.
BREAKING: Litecoin has just completed over 12 million transactions in the last month. That’s more than some blockchains have done in their lifetimes.
What’s in your wallet? #Litecoin ⚡️ $LTC pic.twitter.com/dU1xjF44vr
— Litecoin (@litecoin) July 6, 2024
At the time of writing, LTC/USD increased by just under 20% this week after witnessing a strong sell-off which may have been exacerbated by exchange netflows, per data from intotheblock.
Netflows indicate accumulation
For context, the metric denotes the difference between Large Holder Inflow and Large Holder Outflow. When netflows are positive, then more coins are entering exchanges, potentially leading to selling pressure. Conversely, when netflows are negative, then more funds are leaving exchanges, potentially indicating self-custody accumulation.
As noted, the LTC price has since recovered from the $56.8 low on Friday to $67.70 today after having tested a weekly supportive order block. The lingering question is whether the LTC/USD pair will end this multi-year accumulation period sooner rather than later, and proceed towards price expansion, as has been the case historically.
Since Nov. 2021, holder composition has steadily drifted towards long-term investors, with over 60% of the supply being held by a growing cohort of long-term buyers, per intotheblock data. More recently, buyers and sellers have largely shook hands in a tightening range between $100-$44, setting a higher floor-price every few quarters.
While positive trader price forecasts for Litecoin tend to be drowned out by negative ones on Crypto-Twitter, the coin’s fresh transaction milestone and growing cohort of users and holders speaks to positive fundamental trends, i.e. litecoin is increasingly finding its way into the hands of both users and long-term holders. The launch of MWEB in 2022, a well-received privacy-preserving tool may have aided these trends.
Litecoin exchanges hands at $67.70 at the time of writing.
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