Cryptocurrency

‘Boring’ Litecoin makes play for top 10 amid market meltdown

Hull Invest

Litecoin has climbed the cryptocurrency market capitalization rankings and is currently ranked 15th by market capitalization at the time of writing.

Meanwhile, Solana slipped out of the top 10 at the end of October, dropping to number 16 behind Litecoin.

On October 30th, Litecoin will 21st place, sandwiched between cosmos and chain links. However, recent events have turned the crypto industry upside down, with some commentators warning that his FTX contagion is far from over.

Crypto Market Meltdown

On Nov. 17, newly-appointed FTX CEO John Ray filed for the first Chapter 11 bankruptcy, saying he had never encountered one in his career.such a complete failure of the enterprise such a complete lack of control and reliable finsKojiki

Ray painted a tough picture for creditors and said he lacked confidence in financial statements due to a lack of cash management systems and inadequate reporting mechanisms.

Since November 7th, cryptocurrency market capitalization has hit $248.6 billion, and token prices have been hit by catastrophe. FTX-related tokens saw the biggest drawdowns, with the native FTT token dropping 93% in value and dropping out of the top 200.

Solana’s price has also suffered from concerns about its exposure to FTX collapse. Messari He pointed out that the upgrade key for Serum, a key component of the SOL ecosystem, is held by FTX. Similarly, suspicions surfaced that Sollet BTC (the wrapped bitcoin issued by FTX) is backed 1:1.

On a more specific note, with FTX’s capital, SOL investors are also concerned that key backers no longer support the project.

Market Seeks Litecoin Stability

The turmoil of recent weeks has exposed an industry frantic about unacceptable risks, especially when it comes to collateralizing exchange tokens.

Litecoin was released in October 2011 and became one of the OG cryptocurrencies alongside Bitcoin. Namecoin, Feathercoin, Peercoin are lesser known, but Litecoin is here to stay.

This longevity has not gone unnoticed. The resurgence of LTC is likely a sign of cryptocurrency users seeking stability in a chaotic market. I tweeted:

Similarly, as the SEC securities controversy continues to unfold, Bitcoin maximalist Michael Thaler We recently said that Litecoin is likely to be a commodity.

“Someone may submit an application to designate Litecoin as a digital commodity.”

LTC Wallets Steadily Surpass Ethereum Wallets in Numbers

On-chain data shows that the number of Litecoin wallet addresses continues to grow steadily. The number of wallets at the beginning of the year was approximately 117 million. There are currently around 162 million LTC wallets.

litecoin wallet address
Source: Glassnode.com

Meanwhile, the number of Ethereum wallets in early 2022 was around 140 million wallets. Today that figure is 166 million.

ethereum wallet
Source: Glassnode.com

If this trend continues, the number of Litecoin wallets will surpass Ethereum wallets by the end of the year.

Posted In: Litecoin, Bear Market

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