Litecoin’s [LTC] hash rate touches all time high, but a relief rally is in sight

  • Litecoin’s hash rate marked an all-time high
  • Breaking the correlation with the rest of the market, LTC rallied amid the market decline

At 613.81 TH/s, Litecoins [LTC] hash rate recently hit a new all-time high, data from CoinWarz revealed. After the last significant decline in July, Litecoin’s hash rate increased by 64% in four months.

Read Litecoins [LTC] price forecast 2023-2024

Furthermore, as of December 3, the network’s average difficulty was at its highest level since launch, with a block height of 2,379,925. According to data from Messari, this was 19.42 million.

Source: Messari

Litecoin has a mind of its own

Although the crypto market suffered a sharp decline since the collapse of FTX, LTC’s price pulled a divergence and recorded gains during one of the most significant market declines experienced so far this year.

According to data from CoinMarketCap, amid the FTX debacle, LTC’s price briefly fell to $49.58 before reversing to start a rally. As a result, LTC ended the trading month at an index price of $76.52, increasing its price by 24% within the 30-day period.

Source: CoinMarketCap

Interestingly, despite defying the odds to add to a price rally, most LTC holders failed to see a profit on their investments, as LTC’s Network Realized Profit/Loss (NPL) on a 30-day moving average was -149 000 per 30 November.

This was further confirmed by the status of the asset’s market value in relation to realized value (MVRV) in the same period. According to data from Santiment, LTC’s MVRV on a 30-day moving average in November was -28.00%, indicating that investors held losses despite the asset’s price growth.

Source: Sentiment

Furthermore, LTC was followed by negative sentiment for most of the 30-day period despite the steady price rally. Per data from Santiment, LTC only enjoyed significant positive sentiment from investors during November 21-23. Sentiment remained negative at press time, as LTC’s weighted sentiment was -0.33.

Source: Sentiment

Charges on the network

Even with a consistent increase in hash rate, the fees paid to miners on the Litecoin network have dropped significantly since September 27th. At 13.33 LTC at press time, miners’ fees have fallen by 31%, data from Glassnode revealed.

Source: Glassnode

Furthermore, the average fees paid per transaction on Litecoin has witnessed a steady decline since the year began. This is due to the bearish nature of the trading year so far. Per data from Messari, the average transaction fee on Litecoin has dropped by 100% since January.

Source: Messari

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