- An assessment of Litecoin prospects and attainability based on key price targets.
- LTC whale activity in Q2 reveals why it has struggled to stay above the $100 price level.
Litecoin is right up there with Bitcoin [BTC] in the list of the most successful cryptocurrencies. It has been tried and tested, has operated for years as a decentralized network and it is still going.
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Litecoin is thus a successful crypto project and it fits the bill for individuals looking to diversify their portfolio. As such, one would expect that LTC will secure a healthy share of liquidity during the next bull market just as it has done in the past. But how much growth can it really achieve?
Some investors and enthusiasts have quite high expectations for LTC. For example, X-based analyst Shan Belew expects Litecoin to be worth as low as $3,301 in 2025 and as high as $116,169 during the same year.
Minimum target for 2025 is $3301 with an upper target up $116,169.
It’s time to quit being scared of talking about Litecoin. pic.twitter.com/qoL7IeDBeR
— Shan Belew Ⓜ️🕸 (@MASTERBTCLTC) September 18, 2023
Are those realistic targets? Well, in 2016 if you told anyone that Bitcoin would be worth over $50,000, almost nobody would believe you. However, the upper limit is perhaps a bit of a stretch but Belew’s lower target seemed somewhat attainable. Based on our calculations, Litecoin would require a $243.18 billion marketcap to achieve this lower limit. This is assuming that its circulating supply remains constant.
For context, Litecoin, at the time of writing, had a $4.93 billion marketcap which is also roughly a quarter of the $25.8 billion marketcap at its peak during the previous bull run.
How much would a $1000 investment in LTC yield in the next rally?
If you were to purchase $1,000 worth of LTC at its press time levels, you’d get roughly 14.88 LTC. If LTC’s price action goes to $1000, the same investment will be worth roughly $14,887. Of course, Litecoin needs a lot of accumulation to achieve that target.
LTC’s ability to achieve the aforementioned target will largely depend on whether it can secure robust long-term demand. One of the best ways to establish whether demand is racking up is to look at whale activity.
Litecoin’s supply distribution metric revealed that addresses holding between 100,000 and 1 million coins (yellow) control the lion’s share of the circulating supply at 34.88%.
The largest whale category accumulated a substantial amount of coins in Q2. However, addresses holding over 1 million LTC coins (brown) sold off a substantial amount of LTC during the same quarter and have also contributed to sell pressure in Q3.
How many are 1,10,100 LTCs worth today
Addresses holding between 1,000 and 100,000 have been accumulating in Q3. In summary, whale activity may not necessarily indicate strong demand at the moment.
This is in line with LTC’s struggle to stay above the $100 price level. Nevertheless, it will be interesting to see how whales will react once the market enters the next bullish phase.