Litecoin drops 87% in trading volume in Q1 2022

Interest in cryptocurrencies continues to decline in 2022, as does Litecoin’s popularity. Litecoin’s trading volume was eight times lower in the first quarter of 2022 than it was in the first quarter of 2021.

For example, January to March 2022 trading volume was approximately $82 billion, 87% lower than Q1 2021. In Q1 2021, trading volume was $674.9 billion . Litecoin (LTC) trading volume fell by more than $590 billion in quarter-on-quarter comparison.

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The sharp decline in the value of Litecoin is a result of the negative sentiment in the crypto market. The price has fallen 70% from its high point, $412, reached in May 2021.

LTC started the day green with an increase of 1.72, currently trading at $102.37 | Source: LTC/USD price chart from Tradingview.com

The most popular stablecoin pair for the native LTC of Litecoin was the United State Dollar Tether (USDT) in the first quarter of 2022.

Litecoin Month Wise Comparison of Transaction Volume

January 2021 was the month of Litecoin, with a transaction volume of $284.52 billion. LTC hit a single-day high of $17.99 billion. But in January 2022, LTC trading volume dropped by 89%. The coin’s trading volume was around $31.48 billion, with a single-day high of $2.09 billion.

Similarly, February 2021 also performed well. Litecoin trading volume reached approximately $257.49 billion, with a single-day high of $16.57 billion. However, in February 2022, the performance of the coins fell by 90% compared to February 2021. As a result, the February 2022 one-day high was $1.68 billion.

Litecoin saw a decline in trade volume in March 2021 compared to January and February 2021. Total trade volume for March was $132.91 billion, with a single-day high of $8.08 billion . LTC trading volume was $24.98 for March 2022 with a single-day high of $1.35 billion, down 81% from March 2021.

On January 1, 2022, Litecoin opened at $146.54. On January 2, the coin hit its quarterly high of $152.94. The first quarter close was $123.72. Overall, a 15% decline in the opening and closing price of Litecoin in the first quarter of 2022.

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For comparison, on January 1, 2021, Litecoin opened at $124.67 per coin. On February 20, LTC hit its quarterly high of $245.96. The close for the first quarter of 2021 was $197.5. Litecoin performed well in the first quarter with a spike of 58%.

LTC’s $100 assist is under attack

Litecoin has been trading lower for most of the past year. In November, LTC was below $300 after failing to stay above that level. The coin has been testing the $100 level since January. However, the general sentiment in the crypto market is still bearish. This cryptocurrency made lower highs which is a bad sign, but the $100 support zone still holds.

There was a spike in activity in wallets holding over $100,000 a week ago. This, however, did not drive up the price of Litecoin. Instead, it remained bearish and continued to decline. Yesterday, the sellers failed to break through the $100 support level. It was a good sign. But today, the pressure is still bearish, so the digital asset might see a breakout downside.

                 Featured image from Pixabay and chart from Tradingview.com

Garland K. Long