Litecoin (LTC) returns to multi-cycle lows as new demand emerges

The Litecoin (LTC) index has fallen nearly 60% since its peak last year and is back to lows seen in previous market cycles. Despite remaining one of the most liquid altcoins, LTC has had difficulty resisting the growing negative pressure in the market.

However, many signs indicate that the demand for long-term care still exists. This may not lead to an immediate price recovery, but it provides support for Litecoin to hold and wait for a recovery opportunity.

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Increased demand for long-term care despite a sharp decline

A recent notable development is that SBI VC Trade, a cryptocurrency exchange under the Japanese company SBI Holdings, has expanded its crypto lending services. To include LTC.

Users can The Japanese are now lending LTC through the Lending Coin program to earn interest. The software currently supports more than 30 cryptocurrencies, including BTC, ETH, XRP, LTC, BCH, DOT, LINK, ADA, DOGE and SHIB.

Additionally, the latest report from Coingate – a leading digital payment gateway that allows businesses to accept payments in cryptocurrencies – shows that LTC represents 17.7% of all payment transactions on the platform. This puts only BTC and USDC behind.

I mentioned The Litecoin Foundation said that this figure was 16.4% in December of last year.

These developments reflect the continued demand for long-term care. However, demand is still insufficient to offset the greater pressure on sales in the market.

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Positive signals on the chain help LTC absorb selling pressure

Other indicators on the chain suggest that the internal momentum of LTC remains strong and may strengthen in early 2026.

For example, Litecoin’s optional privacy layer, MWEB, set a new record in the number of connections, surpassing 400,000 LTC points.

Boost MWEB Litecoin transactions through privacy features, including confidential transactions and hidden addresses. A high amount of long-lived transactions associated with a growing amount indicates private transactions on the chain. This trend can help absorb some of the selling pressure.

“Litecoin’s optional privacy level, MWEB, set a new record for the number of links last month. Real-world utility has been important since day one, “He pointed Litecoin.

Additionally, BitInfoCharts data highlights a rare discrepancy between the average value of on-chain transactions and the market price.

Usually, the average transaction value moves in the same direction as the price. However, in recent months, while the value of LTC has decreased by about 55% since October of last year, the average value of transactions on the chain has continued to grow.

This discrepancy may indicate Accumulation of activities From investors who see sales in the broader market as an opportunity.

However, with LTC trading at around $60 – down 85% from its all-time high and 60% from last year’s peak – any recovery is likely to remain a rocky ride.