Litecoin (LTC) is progressing slowly but remains in the market. Currently, LTC online services are still growing, but the value of the altcoin is decreasing.
What drives the growth of the Litecoin network?
Litecoin’s Adjusted Economic Value (AEV) has tripled in the past year and continues to grow. According to the data from FORCEX, the payout increased from 8.81 million LTC to 30.95 million LTC during the same period.
AEV shows the actual amount of LTC tokens sent, excluding unused tokens (UTXO). As such, it shows that there is growth in the use of the ledger, which is encouraging for the entire ecosystem.
The price of the token moved, including UTXO, almost twice from 38.21 million LTC to 58.43 million LTC tokens. This shows that AEV is growing more than the overall volume, which indicates that usage has increased.
However, some users have criticized the metric, arguing that SegWit sends the entire LTC sector even for small transactions. The truth is, AEV addresses this issue and thus becomes a true measure of Internet activity.
Furthermore, the number of LTC holders increased by 2,483% in 24 hours and stood at 8.86 million as of press time. This helps the growth of the network.
One of the factors driving the growth of this network is the emergence of traditional economies. For example, Swiss bank BancaStato now allows customers to buy, sell, and store LTC directly in their current account.
Can LTC make a comeback?
On the charts, Litecoin was trying to recover when the price moved above the stable support after the 9-day SMA crossed above the 21-day SMA.
This followed a six-week consolidation between $41 and $45, below the resistance of $50. However, LTC has now abandoned the consolidation and seems to be heading towards $50, a former support area that has turned into resistance.
In fact, a failure to retrace $50 as support could extend the bearish market.
Additionally, the altcoin is slowly declining after retesting the slanting support area. This is still going on despite a healthy average flow of 862.5K LTC per day.
Brief Summary
- Litecoin’s AEV is increasing by 3x in one year, confirming the continuous growth of internet services.
- The price of LTC is rising and respecting the slanting support, but it is facing a critical test at the $50 level.
