With little consolidation returning to the market, Litecoin (LTC) is progressively giving up some of its gains. Notwithstanding the fact that Litecoin has dropped 1.35% in the last day to trade at $68.65, Santiment data indicates that the Layer-1 protocol has a bright future due to a rise in on-chain transaction activity.
https://x.com/santimentfeed/status/1717715130970947585?s=20
As Santiment noted, Litecoin wants to see a sharp increase in transactions by the conclusion of this workweek. Its trading volume is expected to decline, as seen by the 3% decline that fixed the amount exchanged at $353,198,358. According to Santiment statistics, there were 7,418 whale transactions registered over the week, compared to an average of 319,000 daily active addresses.
This kind of surge in transactions is typical for most high liquidity L1 protocols, including Litecoin. A major winner from the recent market upswing was Litecoin, whose price surged by a comparable amount for the whole month and as high as 6.42% within the previous seven days.
Even if a bearish correction is presently taking place, Litecoin’s consistent rise of on-chain transactions has the potential to quickly transform this negative trend into a positive one. If the current drop reaches that support zone, we can anticipate a comeback around $66 in order to predict what would happen next.
Trailing Bitcoin as market driver
The fact that Litecoin and Bitcoin continue to move in tandem is real, and any discernible changes in the latter can have a significant effect on the former.
There are several favourable fundamentals for Bitcoin in the current market that might significantly increase its price in the upcoming days, weeks, and months. The expectation for growth is also being supported by the mounting demand for the US Securities and Exchange Commission (SEC) to approve a spot Bitcoin ETF product.
Litecoin will surely be impacted by this event, and as a result, it will surpass the marks it has set since its founding 12 years ago.
