Litecoin: Holder Data and Market Dynamics Indicate Long-Term Potential
According to The Coin Republic, Litecoin continues to maintain its reputation as "digital silver" due to its similarities with Bitcoin, especially regarding its consensus mechanism. As of the latest data, over 69% of Litecoin (LTC) holders are in profit, despite the price recently dropping below $100. Only 25% of holders are experiencing losses, positioning Litecoin among the coins with the highest profitability rates for its investors. This is notable given that LTC is still trading at a 30% discount from its December 2024 peak and even further below its all-time high.
At the time of reporting, the LTC price stood at $99, having rebounded by 55% from its 2025 low and by 99% from its 2024 low. The highest price reached by Litecoin was nearly $300, meaning the current price is about one-third of its peak value. This significant discount may be a key factor driving current demand.
| Metric | Value |
|---|---|
| Current Price | $99 |
| Profitability Rate | 69% of holders in profit |
| Loss Rate | 25% of holders in loss |
| Price Recovery from 2025 Low | +55% |
| Price Recovery from 2024 Low | +99% |
| Peak Price (Recent) | ~$300 |
Holder data from IntoTheBlock reveals that 78% of LTC holders have kept their coins for more than 12 months, indicating strong long-term optimism. Only 17% acquired LTC in the past year, and 6% increased their holdings in the last four weeks. Additionally, whales control 49% of the total supply, and large transactions in the past seven days amounted to $62.89 billion.
- 78% of holders have held LTC for over 12 months
- 17% acquired LTC in the last 12 months
- 6% increased holdings in the last 4 weeks
- Whales hold 49% of supply
- Large transactions (last 7 days): $62.89 billion
Litecoin's appeal is further supported by its relatively low circulating supply and its status as one of the oldest cryptocurrencies. Analysts remain optimistic about its long-term prospects, especially as it is considered a top altcoin likely to receive ETF approval. The introduction of Litecoin ETFs could pave the way for significant institutional liquidity inflows, further validating LTC's long-term price potential.
"Litecoin-ETFs could pave the way for extensive institutional liquidity inflows. Such an outcome would further confirm the long-term potential of the LTC price." — The Coin Republic
On the mining side, Litecoin's mining difficulty, which had decreased in early May, has recently rebounded to 85.48 million, approaching new highs. The difficulty peaked at 87.15 million on April 20. The initial drop in mining difficulty was largely attributed to a decline in hash rate during the first week of May, but both metrics have since recovered significantly. This trend highlights the complex relationship between mining difficulty, hash rate, and LTC price performance, all of which influence miner profitability.
| Mining Metric | Value |
|---|---|
| Current Difficulty | 85.48 million |
| Peak Difficulty (April 20) | 87.15 million |
Litecoin's growing popularity is also evident in the derivatives market. Open interest in Litecoin derivatives reached a record $915 million on April 20, marking the highest level of derivative activity in its history. Although open interest dropped to $360 million by April 9 due to disruptions from the tariff war, it rebounded to $707 million by May 14, indicating renewed interest. The report suggests that open interest could surpass $1 billion in the second half of 2025, as demand for derivatives typically correlates positively with spot market flows.
| Date | Open Interest |
|---|---|
| April 20 | $915 million |
| April 9 | $360 million |
| May 14 | $707 million |
- Record open interest: $915 million (April 20)
- Lowest open interest: $360 million (April 9)
- Rebound to $707 million (May 14)
- Potential to exceed $1 billion in H2 2025
Summary Box:
- Litecoin remains highly profitable for most holders, with 69% in profit at a price of $99.
- Long-term holding is prevalent, with 78% of holders keeping LTC for over a year.
- Mining difficulty and hash rate are both recovering, indicating strong network activity.
- Derivatives market activity is at historic highs, with open interest rebounding and possibly exceeding $1 billion in the near future.
- Analysts are optimistic about Litecoin's long-term prospects, especially with potential ETF approval on the horizon.
Source: The Coin Republic
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