Litecoin price hits bottom but "more and more used": LTC payment data defies the trend and strengthens, institutional demand highlights

LTC-0,89%
BTC0,42%
XRP-0,88%
USDC-0,01%

Litecoin (LTC) price drops to its lowest point in over four months, falling nearly 12% over the past week, with market sentiment remaining cautious. However, contrasting with the price trend, its on-chain usage and real demand continue to rise, indicating that this established blockchain still maintains a stable vitality.

From a technical perspective, LTC briefly dipped to its lowest levels since October of last year on the daily chart. Although a short-term rebound occurred, it still remains below key moving averages. The RSI stays in the weak zone, and the MACD is in negative territory, suggesting that downward momentum has not yet fully released. The lower Bollinger Band is frequently touched, indicating short-term volatility is still amplifying.

However, the fundamentals have not weakened accordingly. Supported by Japan’s SBI Holdings, the platform SBI VC Trade has recently included LTC in its crypto asset lending services, placing it alongside mainstream assets like BTC, ETH, and XRP. This move signals institutional recognition of Litecoin’s liquidity and long-term usability.

In payment scenarios, LTC’s presence is also increasing. CoinGate statistics show that in January, Litecoin became the third most-used payment cryptocurrency, accounting for 17.7% of total transactions, up from 16.4% in December, second only to Bitcoin and the USD stablecoin USDC. This demonstrates that LTC still offers cost and speed advantages in cross-border settlements and small transfers.

Meanwhile, Litecoin’s privacy extension layer MWEB has reached new activity highs, with locked balances continuously rising over the past month, reflecting increased user demand for private payments. Even as prices face pressure, network usage data shows a “counter-cyclical” growth.

When price declines diverge from real usage, it often indicates a misalignment between market sentiment and asset value. For investors monitoring Litecoin’s price trends, LTC payment applications, and on-chain activity, this structural change may be more worth tracking than short-term fluctuations.

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