Should You Invest in Litecoin with Potential Litecoin ETF?
Litecoin (LTC) recently surpassed Ethereum (ETH) in terms of average holding duration, showcasing its enduring attraction for investors who prefer to hold their assets long-term. Still, Bitcoin (BTC) continues to maintain its position at the top.
Data from IntoTheBlock reveals that Bitcoin leads with an average holding time of 4.4 years, reinforcing its status as a “digital gold” for wealth preservation. Average holding time measures the length of time a token remains in a single wallet, indicating investor confidence in the asset’s stability. Bitcoin continues to attract both retail and institutional investors as it approaches its all-time high, while Litecoin follows with a holding period of 2.6 years, reflecting a shift toward more dedicated long-term holders. Ethereum (ETH), Dogecoin (DOGE), and Shiba Inu (SHIB) share a holding period of 2.4 years, suggesting that even meme coins are seen as more than mere speculation. Other tokens on IntoTheBlock’s list include Chainlink (LINK), Toncoin (TON), Tron (TRX), and Cardano (ADA), with average holding times of 1.9 years for LINK and TON, and 1.2 years for TRX and ADA. USDT and AVAX hold the shortest average periods at 8.9 months and 7.7 months, respectively, with USDT often used primarily as a trading tool rather than an investment.
Litecoin’s Volatile Path
Litecoin’s average holding time has risen during a promising period for the network. After some volatility, LTC has entered a bullish trend, though it has faced challenges. In 2021, crypto whales largely divested from LTC, and few re-entered following the crypto winter of 2022. While it lost nearly 25% in August, Litecoin saw a 30% recovery earlier this month, now trading above its January starting price. The recent surge largely stems from the excitement around a potential Exchange-Traded Fund (ETF). Canary Capital Group has filed an application with the SEC for a Litecoin ETF, which, if approved, would grant retail and institutional investors direct LTC exposure. Litecoin’s founder Charlie Lee expects potential approval in 2025.
Litecoin Price Outlook (as of Nov 1, 2024)
Litecoin’s primary narrative positions it as a Bitcoin alternative, with price increases anticipated alongside Bitcoin’s rise. Litecoin’s price has hit resistance near $76, with initial support levels at $67 and $60. While Bitcoin has recently consolidated, Litecoin may experience slight fluctuations in the short term. If Bitcoin continues to rise, Litecoin may follow suit, with the reduced circulating supply potentially amplifying gains once momentum builds.
