• The hash rate of Litecoin has made a significant contribution to investor confidence since September.
• Litecoin is the best-performing of the top coins in terms of its ability to hold value, having bottomed out in June and rallying since then.
• Grayscale’s Litecoin Trust has seen a 36% increase, indicating strong bullish sentiment.
The crypto market has been in a state of flux over the past few months, but one of the few coins that has performed well is Litecoin [LTC]. Since September, investor confidence in LTC has grown significantly due to a noticeable increase in its hash rate. This has been further bolstered by its strong ability to hold value, as it bottomed out in June 2022 and has been rallying since then.
This increase in investor confidence has also been seen in Grayscale’s Litecoin Trust, which has seen a 36% increase as of 10 January. This indicates that there is strong bullish sentiment in the market, and there is anticipation of further growth in the coming months.
Given the current market conditions and LTC’s strong performance, there are high expectations for 2023 as the halving is set to happen in that year. As such, the market has already been preparing for a robust 2023, which was evident in LTC’s price action and hash rate. The hash rate has grown substantially since September 2022, largely in part due to the migration of miners post Ethereum’s [ETH] merge.
At present, LTC is trading within an ascending price channel and is off to a strong bullish start this month. However, there may be some selling pressure as it is currently overbought according to the RSI indicator, although a large retracement may not be in the picture unless the market gets spoofed. This is because Litecoin’s rally is heavily backed by whales, as evidenced by Grayscale’s addition of its Litecoin Trust near the bottom.
All in all, Litecoin is looking to be a strong contender in the crypto market in 2023. The increase in its hash rate, coupled with its strong ability to hold value, has made it stand out from other top coins. With the upcoming halving, it appears that the market is already preparing for a robust 2023, and its strong performance this year indicates that there is a lot of potential for further growth in the coming months.