Litecoin weakened further over the past 24 hours, declining by 0.6% and underperforming the broader cryptocurrency market as risk-off sentiment continued to weigh on digital assets.
Price data showed LTC falling to $78.10, even as trading activity increased, pushing the token’s market capitalisation to approximately $6 billion at the time of reporting. The price decline occurred alongside heightened market volatility that has affected most major cryptocurrencies.
Figures from CoinMarketCap indicated that Litecoin’s trading volume surged by around 40% to $382 million on Monday, reflecting increased speculative activity following a recent network upgrade focused on transaction privacy.
More than 90% of Litecoin nodes now support MimbleWimble Extension Blocks (MWEB), a privacy-enhancing feature that enables confidential transactions. When combined with the Taproot upgrade implemented in 2022, the enhancements are designed to improve Litecoin’s fungibility and expand its potential use cases in smart contract functionality.
Despite these technical improvements, market participants largely discounted the positive fundamentals, with price action suggesting that broader macro and sector-wide forces remain the dominant drivers of short-term performance.
Crypto analysts noted that Litecoin’s weakness mirrors wider pressure across the altcoin market, as the Altcoin Season Index continues to signal a “Bitcoin Season.” During such periods, liquidity typically flows away from smaller tokens and toward Bitcoin, which investors perceive as a relative safe haven within the digital asset space.
Technical indicators also point to continued caution. Litecoin failed to break above resistance at $78.94 and remains below its 30-day moving average of $80, reinforcing bearish near-term sentiment.
Market observers say Litecoin’s struggle highlights the difficulty altcoins face in differentiating themselves during periods of heightened risk aversion, even when supported by meaningful network upgrades.
Adding to the longer-term narrative, U.S.-based biopharmaceutical company MEI Pharma recently disclosed a $100 million allocation to Litecoin as part of its corporate treasury strategy. The move, executed through a private placement, marked the first time a U.S.-listed firm has adopted Litecoin as a primary reserve asset.
The decision was reportedly advised by digital asset market maker GSR Markets and Litecoin creator Charlie Lee, and is viewed by some analysts as a signal of growing institutional confidence in Litecoin’s liquidity profile and regulatory standing.
However, Litecoin’s muted price response following the announcement suggests that investors are waiting for broader evidence of corporate adoption before reassessing the asset’s valuation. Until then, analysts expect Litecoin’s performance to remain closely tied to overall market sentiment rather than project-specific developments.
