Evaluating why LTC whales are on thin ice despite Litecoin’s performance in 2022

  • Litecoin processing 39 million transactions by 2022
  • It has viewed more than 50 million unique wallet addresses, but at the time of publication, LTC has lost more than half of its value

Litecoin [LTC]The open source, decentralized cryptocurrency network has ended its 2022 trading year with over 39 million transactions completed on it.

Despite the general downtrend that has characterized the last trading year, Litecoin has recorded some milestones both on and off the chain. In addition to a jump in the number of transactions processed on the network, the number of unique addresses on Litecoin in 2022 reached 52 million.

Additionally, the Litecoin Foundation released its 2022 summary via a blog posts. The non-profit organization founded to promote Litecoin noted that the number of addresses was the “second largest number of cryptocurrencies” in 2022.


Read Litecoins [LTC] Price forecast 2023-24


added,

“This is not the only sign of growing use and adoption, but an example of the ever-increasing expansion of the Litecoin ecosystem.”

Moreover, during the year, Litecoin has been hashed registered New all-time high of 613.81TH/sec. Additionally, the network’s average difficulty reached a record high on December 3 over the 11 years the network had been in business.

No whales to save LTC

Not spared from the sharp market downturn last year, the value of LTC fell by 54%, according to data from CoinMarketCap open.

For context, at the start of 2022, the altcoin was trading at $151 apiece. As the bear market intensified, it traded as low as $43 in June. After hitting the lowest level of the year, it gradually recovered to end the year trading at $68.

In addition to the overall slowdown in growth in 2022, the on-chain data showed that major LTC addresses distributed their tokens gradually over a 12-month period.

For example, when Terra-Luna collapsed in May, the number of LTC tokens containing 10,000 to 1,000,000 LTC tokens dropped sharply by 6% between May 24-25.

The number temporarily recovered in early June, but soon fell as positive sentiment gradually left the market in the second half of the year.

Between January and December 2022, the number of this group of LTC holders decreased by 6%, Santiment data showed.


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Conversely, sharks holding 1 to 10,000 LTC coins intensified the accumulation. However, this was not enough to raise the value of the assets amidst a general prolonged decline in the market.

Source: feeling

On the development front, Litecoin completed the implementation of the MimbleWimble upgrade on May 19, 2022. The upgrade was made to improve user experience by allowing users to make confidential transactions on the Litecoin network.

After implementing this upgrade and its many updates throughout the year, development activity on Litecoin has dropped significantly. This was because it touched 0 several times. It ended the year at 0.21, per WHO data feelings.

Source: feeling

With multiple Litecoin partnerships expected to bear fruit in the new year and a planned halving in August 2023, LTC could be headed higher.

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