Bitcoin (BTC) and Litecoin (LTC) are among the oldest currencies in the space, having the smallest “generational gap” at this time. Their prices have often moved in lockstep since their establishment.
Almost little has changed in the last almost a decade. Consider this: Between September 29 and today, the price of BTC has increased by almost 51%, while the price of LTC has increased by 43%. In fact, their patterns on the price chart appear to be rather similar.
Despite this, Bitcoin recently surpassed its all-time high, while Litecoin’s current value is around half of what it was in May. In fact, LTC’s market value has shrunk to about $13.4 billion, and the alt currently ranks 17 on CMC’s chart.
On-chain measurements for Bitcoin and Litecoin, on the other hand, have recently begun to forecast very diverse patterns. For example, the number of big Litecoin transactions has dropped from 7k to approximately 3k in only three weeks. In retrospect, the volume dropped by more than tenfold from its recent September-end high.
6-Months Litecoin Price Chart – Source: Tradingview
On the contrary, the number of Bitcoin-related major transactions has recently increased significantly. In a recent piece, the same point was made.
Reserve risk forecasts for both coins were likewise slightly lower than expected. As a result, this indicator is used to gauge long-term HODLers’ confidence in relation to the asset’s price at any given moment.
When confidence is strong and prices are low, the reserve risk is low, reflecting a favorable risk-to-reward ratio for investing. When confidence is low and the price is high, the risk/reward ratio is unappealing, and the reading from this indicator is generally high.
The Reserve Risk of LTC is now hovering in the favorable zone, as seen in the figure below. Since the end of September, BTC’s RR, on the other hand, has been edging marginally higher on its chart.
Furthermore, Litecoin’s NVT has recently increased, meaning that the network value is exceeding the value being transmitted. Despite this, Bitcoin’s network value to transaction ratio has been declining recently.
Litecoin, up until now, has seldom deviated from Bitcoin’s course. Nonetheless, given the non-sync of the coins’ on-chain measures, it’s fair to say that LTC has been attempting to isolate itself from BTC in recent months.