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Assessing why LTC whales stood on thin ice despite Litecoin’s 2022 performance

Litecoin [LTC], a decentralised, open-source cryptocurrency network, completed 39 million transactions in 2022.

Litecoin achieved some on- and off-chain milestones last year despite the general downtrend. In 2022, Litecoin had 52 million unique addresses and more transactions.

The Litecoin Foundation blogged about 2022. In 2022, the address count was the “second most of any cryptocurrency,” according to the non-profit Litecoin Foundation.

Further,

“This isn’t the only marker of increased use and adoption, but an example of the ever-increasing expansion of the Litecoin ecosystem.”

In addition, Litecoin’s hashrate reached a record 613.81TH/s. On 3 December, the network’s average difficulty reached an all-time high after 11 years.

LTC lost 54% of its value last year, according to CoinMarketCap.

At the start of 2022, the altcoin cost $151. In June, the bear market dropped it to $43. After hitting its year-low, it rose to $68.

On-chain data showed that LTC whale addresses gradually distributed their tokens in 2022, despite a decline in growth.

Between 24 and 25 May, the number of LTC whale addresses with 10,000 to 1,000,000 LTC tokens dropped by 6% after Terra-Luna collapsed.

The count rose briefly in June but fell as positive conviction left the market in the second half of the year.

Santiment data showed a 6% drop in this cohort of LTC holders between January and December 2022.

Sharks with 1–10,000 LTC tokens increased accumulation. Despite the market decline, this did not increase the asset’s value.

On 19 May 2022, Litecoin completed its MimbleWimble upgrade. The upgrade allowed users to make private Litecoin Network transactions to improve user experience.

Litecoin development slowed after this upgrade and its updates. Because it touched 0 several times. Santiment reported 0.21 for the year.

Litecoin may rally in the new year due to its many partnerships and the August 2023 halving.

 

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