1. Home
  2. Altcoins
  3. Will Litecoin Repeat Its 2017 Bull Cycle? Crypto Exchange Kraken Says LTC Seeing Unprecedented Demand and Network Activity
Will Litecoin Repeat Its 2017 Bull Cycle? Crypto Exchange Kraken Says LTC Seeing Unprecedented Demand and Network Activity

Will Litecoin Repeat Its 2017 Bull Cycle? Crypto Exchange Kraken Says LTC Seeing Unprecedented Demand and Network Activity

0

Source: Daily Hodle

Will Litecoin Repeat Its 2017 Bull Cycle? Crypto Exchange Kraken Says LTC Seeing Unprecedented Demand and Network Activity

Digital asset exchange Kraken is looking at the on-chain metrics of Litecoin to determine whether the peer-to-peer payments network can duplicate its 2017 bull market performance.

In a new report, Kraken highlights that in December 2017, Litecoin (LTC) surged 638% in just 30 days from $50 to $369. According to Kraken, LTC is flashing on-chain signals that foreshadowed its abrupt rally during the 2017 bull cycle.

“On-chain activity shows that not only has network demand started to trend higher and enter into what might be the next ‘growth wave,’ but it also remains below ‘overbought’ territory.”

One on-chain metric that’s on Kraken’s radar is the number of active addresses, which the report notes has been in a strong uptrend for nearly 12 months.

“First, the number of active addresses has been in a parabolic uptrend since December 2020, which indicates that the network continues to see increasingly greater activity amid the broader market’s rally. Second, the number of active addresses has recently gone vertical, the sharpest increase in activity since April 2021, a sign of a sudden burst in network demand and activity.”

Kraken adds that Litecoin’s number of new addresses with non-zero balances is also on the up and up.

“At the time of writing, the 7-day moving average of new addresses (with non-zero balances) stands at an all-time high of 308,827. The 7-day moving average of new addresses recently surpassed the prior all-time high of 270,000 on October 9th, 2021, continuing to rise into November.”

In addition to on-chain data, Kraken is also looking at Litecoin’s MVRV Z-score, which is a metric that determines whether an asset is overvalued or undervalued relative to its fair value. According to the report, Litecoin is currently far from overbought territory even after its recent price surge.

“LTC’s current MVRV Z-score is slightly above 2 and will have to increase by 3.5x before hitting a reading of 7, or what has historically been considered ‘overbought.’”

You can read Kraken’s full report here.

Check Price Action

Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

&nbsp
Check Latest News Headlines

 

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/Pavel Chagochkin

The post Will Litecoin Repeat Its 2017 Bull Cycle? Crypto Exchange Kraken Says LTC Seeing Unprecedented Demand and Network Activity appeared first on The Daily Hodl.

Go to Source
Author: Daily Hodl Staff