Litecoin (LTC) broke above $70 on some exchanges this week. Trading volume rose amid reports of a court ruling in favor of Grayscale, a digital asset manager.
The court forced the Securities and Exchange Commission (SEC) to reconsider the company’s application to transform its bitcoin trust into a crypto fund ETF. The average daily trading volume reached $540 million, as evidenced by data from the CoinMarketCap service.
However, already on Thursday, the altcoin began to decline. The LTC exchange rate fell to $64 on Friday, September 1. Capitalization decreased to $4.679 billion, and daily turnover fell to $389.7 million.
IntoTheBlock’s review notes that the lion’s share of LTC is held by long-term investors or so-called hodlers.
55% of addresses in the network have not moved litecoin for more than 12 months. There are 4.95 million such wallets, last year this number was 2.55 million, emphasized IntoTheBlock.
Thanks to the partnership between LTC developers and BitPay payment service, transaction activity in the network has sharply increased in three months. The number of transactions reached 175 million. This year alone it has already exceeded 46 million.
Another important event for litecoin was the August halving. The miners’ remuneration for mining a block was reduced to 6.25 LTC.
Contrary to expectations, the halving did not become a driver of the rally.
Experts predicted that by the end of summer the altcoin would approach $150 or even exceed this mark. However, it did not hold even near $100 and fell by 26% in August.