In the midst of a turbulent start to April for the broader crypto market, Litecoin (LTC) has managed to buck the trend, showcasing a bullish movement. This outlier performance can be attributed, in part, to the Commodity Futures Trading Commission’s (CFTC) recent classification of Litecoin as a commodity.
Litecoin, which was once part of the top 10 cryptocurrencies by market capitalization, has faced significant setbacks over the years. However, the silver crypto’s current resurgence has caught the attention of the crypto community.
According to IntoTheBlock’s analysis, Litecoin’s recent price action has led to 75% of LTC holders now sitting on profits. They also highlighted a key on-chain resistance at around the $150 threshold, which has been marked by the acquisition of 8.16 million LTC held by 590,000 addresses.
The CFTC’s classification of Litecoin as a commodity, rather than a security under the SEC’s oversight, has played a significant role in the asset’s performance. This move has exempted LTC from the stricter regulations imposed on coin issuers regarding securities, potentially contributing to its bullish trajectory.
Litecoin’s on-chain transaction volume spiked as the price topped at the end of March, and the movement of coins from dormant whale wallets back into circulation suggests that the ongoing price bounce is “justified,” according to Santiment’s analysis.
As the CFTC and SEC continue to battle for control over crypto regulation, Litecoin’s classification as a commodity has set it apart from the broader crypto market turmoil. This development, coupled with the asset’s strong on-chain metrics, has positioned Litecoin as a potential bright spot in the current crypto landscape.
