🔥 On February 11, Litecoin (LTC) increased by 11.7% in 24 hours, rising more than 18.6% in a week, with a market cap surpassing 9.397 billion USD, overtaking Shiba Inu (SHIB) and climbing to 19th place in the cryptocurrency rankings!
💡 Can the established POW public chain make a comeback, or is it just a short-term FOMO in the market? Does LTC still have investment value?
Today, we will deeply analyze the true logic behind LTC's recent surge and its future market potential!
📊 1. Why did LTC suddenly surge?
📌 LTC is one of the earliest Bitcoin forks, having been born in 2011, and has always been referred to as 'Bitcoin Gold, Litecoin Silver.' However, in recent years, with the rise of Layer2 and AI sectors, LTC was once overlooked by the market.
So, why was it able to surge this time? The main reasons are as follows:
✅ 1. The Bitcoin bull market has started, and LTC, as a 'leading altcoin', benefits from it.
• Historical data shows that LTC's price movement is highly correlated with BTC. In every Bitcoin bull market, LTC typically follows BTC's trend to experience a rebound.
• After the approval of BTC spot ETFs in 2024, the market remains optimistic about BTC, and LTC, as an 'established POW asset', has also become one of the choices for institutional allocation.
• Data support:
• In the past three rounds of BTC bull markets, LTC has experienced significant increases following BTC's new highs.
• In the 2020-2021 bull market, LTC reached a peak of 413 USD; will it be able to return to historical highs in this bull market?
📢 As part of the Bitcoin ecosystem, once BTC continues to rise, LTC is likely to benefit further!
✅ 2. LTC network activity is rising, with the number of addresses reaching a new high
• Recently, LTC's on-chain activity has surged, with daily transaction volumes exceeding 700,000, nearing historical highs.
• The number of active addresses has surpassed 9 million, indicating that more and more users are using the LTC network.
• LTC's low transaction fees and fast transactions have become an alternative choice during the era of high Gas fees for Bitcoin.
📢 On-chain activity data is a leading indicator; if the LTC ecosystem continues to grow, its long-term value may be reassessed by the market.
✅ 3. Institutional holdings are increasing, with Grayscale's LTC holdings exceeding 1.6 million coins
• According to Grayscale data, its LTC trust holdings have exceeded 1.6 million coins, with a total value exceeding 200 million USD.
• As a POW public chain, LTC, like BTC, is viewed by institutions as a 'long-term storage value asset.'
📢 If institutions continue to increase their holdings, LTC may see more capital inflows, pushing prices up!
🔥 2. Can LTC maintain its market capitalization ranking, or is it just short-term FOMO?
📌 Can LTC's recent surpassing of SHIB maintain its market capitalization ranking in the long term, or is it just a temporary surpass?
✅ 1. Comparison with SHIB: Capital Flow VS Narrative Consensus
• SHIB is a MEME coin, relying on community consensus and market sentiment, with high liquidity, but its long-term value is questionable.
• As an established public chain, although LTC is not as popular as SHIB, it has POW ecosystem support, making institutions more willing to allocate.
📢 LTC's advantages are technical stability and institutional recognition, while SHIB's advantages are community power and FOMO effects.
✅ 2. Performance of past cycles
• In the 2017-2018 bull market, LTC once ranked among the top 5 cryptocurrencies by market cap.
• In the 2020-2021 bull market, LTC once reached the top 10 by market cap, but was later surpassed by new narratives like DeFi and Meme coins.
• In 2024-2025, if the BTC bull market continues, LTC is likely to experience another highlight moment.
📢 However, in the long term, LTC needs more technological breakthroughs; otherwise, it may still be surpassed by new public chains.
⚡ 3. How should ordinary investors view LTC?
📌 In the face of LTC's recent surge, how should ordinary investors operate?
✅ 1. Is it suitable for long-term holding?
• If BTC continues to rise, LTC still has room for growth.
• In the long run, LTC needs more ecosystem development; otherwise, it will be hard to compete with ETH and SOL.
📢 If you are a value investor, LTC can serve as a 'satellite allocation' to BTC, but should not be heavily weighted.
✅ 2. Short-term speculative strategies
• LTC has seen significant gains recently, and there may be retracement risks in the short term; it is recommended to wait for adjustments before entering.
• You can pay attention to BTC trends; if BTC continues to rise, LTC may still have room for a rebound.
📢 Short-term traders can focus on retracement support levels to look for entry points!
📢 Conclusion: Can LTC truly make a comeback?
🎯 1. Driven by the BTC bull market, LTC has shown significant recent gains, but its long-term value remains controversial.
🎯 2. Institutional accumulation and rising on-chain activity indicate that there is still demand for LTC in the market.
🎯 3. In the short term, LTC may continue to follow BTC trends, but whether it can maintain its market capitalization ranking in the long term remains to be seen.
📢 What do you think? Can LTC break into the top 10 in the future?
🔥 Do you think LTC's surpassing SHIB this time is a temporary phenomenon or a long-term trend?
💬 Which do you favor more, LTC or SHIB? Feel free to discuss!
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