Institutional interest in Litecoin is on the rise. While it is known as the “silver” to Bitcoin’s gold, that narrative is changing. It looks like Litecoin might be standing independently, since institutions and retail investors alike, are starting to see potential in it.
Grayscale Litecoin Trust (LTCN), after over a month, finally witnessed some gains as LTCN rose by 32.39% today.
Grayscale Litecoin Trust (LTCN) rose by 32% today | Source: TradingView – AMBCrypto
There are 2 reasons for this rise. First of which is that yesterday, during the Darlington raceway, racer Landon Cassill, a crypto enthusiast himself, became the first driver to be paid entirely in crypto, specifically in Litecoin.
Secondly, LTC crossing $200 once again, is a huge milestone. Moreover, it still continues to rise, placing the 7-day gains at 34.72%. As a result, not only institutions, but also retail investors are drawn to Litecoin.
Contributing factors
As for investors, apart from these abovementioned reasons, Litecoin’s good stats is a driving factor in itself. Low volatility (58%) of the altcoin keeps the price safe from random fluctuations. And a high correlation to BTC (0.97) continues to sustain the asset’s strong value.
Litecoin’s volatility at a low | Source: Intotheblock – AMBCrypto
In addition to this, Liveliness is at its 4 month low which shows that LTC is also a part of the accumulation trend. Old coins being destroyed has come down as dormancy seems to be setting in. This bullishness is also boosted by the 4-month high of the MVRV Ratio, making LTC a preferable altcoin for big and small investors.
Litecoin MVRV ratio at a 4-month high | Source: Glassnode – AMBCrypto
However, figures aside a huge contributor to Litecoin’s adoption is also the fact that over the years it has been relatively stable. So if you are looking for a good investment opportunity, Litecoin seems to be making a strong case.