April 2, 2023

Litecoin (LTC) may have slipped off the list of the top 20 cryptocurrencies by market cap. Even so, it may be one of the most undervalued coins out there. In fact, it could be one of the best coins that is most likely to rally strongly during the next bull run.

Litecoin may not be the best performing cryptocurrency during the relief rallies in June and July. However, investors should still consider adding it to their portfolio. Why? Well, for starters, the total number of addresses has grown steadily over the past 6 months. This is a sign of healthy demand, although its prices have taken a huge hit during this period.

Litecoin had a market cap of $3.73 billion on August 26 with a total of 151 million addresses. If we divide the market cap by the total number of addresses, we find that each address has a network value of $24.

To put that in perspective, Bitcoin’s network value per address is $380, while Ethereum’s network value is $1,126. Uniswap’s market cap is closer to Litecoin, with a network value of $4,210 per address.

Source: Glassnode

The comparison between the aforementioned networks confirms the view that Litecoin is undervalued. Therefore, it may have the greatest growth potential in the short and long term.

For example, at the time of writing, LTC is trading very low, like most top cryptocurrencies. In fact, it trades at an 87.2% discount to its ATH.

Source: Glassnode

LTC’s Coin Days Destroyed indicator also shows that there is a lot of unused UTXO, especially at the price at which it is trading. This shows that many investors are hoarding their tokens, although there are some examples of short-term profit-taking.

Litecoin’s short-term and long-term prospects

Litecoin’s news-time price tag of $52.56 highlights the marginal gain from the 2022 low on the chart. Still, it’s near a bottom and more downside may still be sought in the current bearish market environment. This is because Litecoin is closely related to other markets.

On the other hand, the undervalued nature of Litecoin could make it one of the most attractive cryptocurrencies when the bear market ends. Other properties, such as its focus on privacy and decentralized nature, are additional advantages.

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