by - The hash speed and difficulty of mining Litecoin has increased significantly over the past month.
- The network as a whole suffered losses as indicated by a negative MVRV.
Litecoin (LTC) was one of the most successful cryptocurrencies in 2023, jumping as much as 33% since the beginning of the year, data from CoinMarketCap revealed.
Read the Litecoin (LTC) price forecast 2023-24
Due to the increase in prices, mining activity on the network has definitely increased. According to Coinwarz, the LTC hash rate was 765.12 TH/s at the time of writing, an increase of more than 30% over the previous month. The overall mining difficulty on the network also increased over the same period.
source: coinwarz
A higher hashrate is a positive sign as it means there are more miners on the network which makes it more secure.
Litecoin wants to be environmentally friendly
On February 24, the Litecoin Foundation partnered with Metalpha to develop sustainable mining solutions. Litecoin said the partnership’s key research areas will facilitate the use of renewable energy and lower carbon emissions from on-network mining.
BREAKING: @LTC Foundation AND @MetalphaPro create a partnership to develop security and sustainable mining solutions for the Litecoin ecosystem. Seeking to expand the use of renewable energy and lower carbon emissions on the Litecoin network.https://t.co/nlNXHAmphO
— Litecoin Foundation ⚡️ (@LTCFoundation) February 24, 2023
As mentioned earlier, higher mixing rates are desirable. However, they can have a negative impact on the environment due to the increase in the amount of energy needed for extraction. This factor is a major scaling constraint for blockchains, leading many to move to proof-of-stake (PoS) algorithms.
Bears to take over?
Litecoin’s activity on the chain has been unenthusiastic, with transaction volume down 31% from the previous month, although there have been signs of an increase in recent days.
Daily active addresses have fallen significantly since reaching a monthly high on February 9. Speed also dropped, meaning new addresses stayed away from LTC.
The 30-day MVRV fell deeper into the negative. This meant that most LTC holders would suffer losses if they sold their tokens at press time.
source: Santiment
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According to CoinMarketCap, LTC is down 2.27% from the previous day to $91.99 at the time of writing. As indicated, in February LTC was moving in a certain range. Price broke some resistance on February 16, but returned to test the range lows as support.
The Relative Strength Index (RSI) fell below the neutral 50 mark, suggesting that selling pressure has increased in the market. The Moving Average Convergence Divergence (MACD) also showed strong bearish signals.
Source: Trading View LTC/USD
