Our analysis of the crypto world continues, specifically the prices and news of the crypto Fantom (FTM) and Litecoin (LTC).
It does not seem to be a good time for either of them, but let’s look at it in detail.
Prices and market statistics of the Fantom (FTM) and Litecoin (LTC) crypto assets
Let’s start with Fantom, which among the two projects was the one that lost the most, specifically in 30 days it lost 18.30% of its value, bringing the value of FTM to $0.33.
As a result of the decrease in value, it has changed the market statistics, which now see Fantom with a market capitalization of $930.6 million and a daily trading volume of $251.3 million.
Fantom’s circulating supply, on the other hand, is 2.8 billion FTM with an average holding time of 18 days.
Shifting to Litecoin, in the last period it has certainly proven to be more stable than the first mentioned. In fact, the LTC token has lost only 4.10% of its value, bringing its price to $84.36.
Market statistics see a market capitalization of $6.3 billion, with a trading volume in the last 24 hours of $752.1 million.
The circulating supply of Litecoin is 73 million LTC, with an average holding time of 103 days. At the moment, LTC is in the number 10 position in the popularity ranking.
But let’s move on and see some news that has potentially affected, or will affect, the price of the two tokens.
Fantom Foundation’s removal of liquidity raises concerns about Multichain’s stability
The Fantom Foundation, the team behind the development of the Fantom blockchain, has made headlines for removing a substantial amount of liquidity from a trading pool for Multichain’s native token.
This move exacerbated concerns about the stability of the cross-chain bridging protocol.
According to Etherscan data, a portfolio controlled by the Fantom Foundation removed about 450,000 MULTI tokens and 1,363 Ether from a liquidity pool on the decentralized exchange SushiSwap.
The move was first highlighted by on-chain researcher Lookonchain. At this time, the Fantom Foundation has not provided any immediate response to the incident.
The timing of this liquidity removal is of particular concern as Multichain users have reported significant delays in withdrawing their cryptographic assets from the protocol.
Multichain serves as a bridge between the Fantom and Ethereum ecosystems, allowing users to move assets seamlessly between the two networks.
However, as of 21 May, the community was informed of an unexpected delay in updating the system. Unfortunately, representatives from Multichain have not yet responded to requests for comment on the matter.
The removal of liquidity from the trading pool, along with reported delays in asset withdrawals, has raised questions about Multichain’s stability and reliability.
Users rely on these cross-chain bridging protocols to facilitate the transfer of assets between different blockchain networks in a secure and efficient manner.
Any problems or disruptions in these protocols can lead to significant disruptions and potential financial losses for users.
The lack of communication between the two companies makes the situation more worrisome
The lack of immediate response from representatives of the Fantom Foundation and Multichain has only added to the concerns of the cryptocurrency community.
Transparency and effective communication are essential in situations like these, as they help build trust and maintain the confidence of users and investors.
It is important to note that incidents like these should not automatically be equated with malicious or illegal behavior.
However, they do highlight the need for robust systems and processes to ensure the stability and security of cross-chain bridging protocols.
As the blockchain industry continues to evolve, it is critical that developers and project teams prioritize thorough testing, verification and ongoing maintenance of their protocols to minimize the occurrence of such incidents and sustain user trust.
As the situation evolves, users and investors anxiously await a response from the Fantom Foundation and Multichain representatives, hoping for clarification on the removal of liquidity and an update on the resolution of the reported delays.
Prompt resolution of these issues is critical to restoring trust in Multichain and maintaining the integrity of cross-chain bridging protocols within the broader blockchain ecosystem.
The LTC halving approaches: experts predict network improvements and a surge in crypto prices
As LTC’s halving approaches, cryptocurrency experts are abuzz, predicting significant improvements to the Litecoin (LTC) network and a potential surge in the asset’s price.
The event, expected in about 70 days, will reduce the blockchain’s mining rewards from 12.5 to 6.25 LTC, as reported by market intelligence platform Santiment.
LTC halving is a recurring phenomenon that occurs about every four years, similar to Bitcoin halving events.
It is a fundamental mechanism built into the Litecoin protocol to maintain scarcity and control inflation.
This halving ensures that the rate of production of new LTC coins slows over time, thus increasing their scarcity and potentially driving up their value.
Santiment experts predict a price explosion for LTC as halving approaches, pointing to two key factors. First, miners are expected to intensify their efforts to mine more tokens before the event takes place.
With the reduction in mining rewards, miners will have a strong incentive to accumulate as many LTC coins as possible while the rewards are still relatively high.
This increased demand for mining could potentially strengthen the overall security and efficiency of the Litecoin network.
Second, the reduction in the production rate of each LTC coin resulting from halving will likely create an imbalance between supply and demand.
As fewer new coins enter circulation, the existing supply of LTC will become scarcer.
This scarcity could drive up the value of LTC as investors and traders perceive it as a more limited and valuable asset.
The anticipation of this slowdown in production has already triggered market speculation, which could further contribute to a potential price surge.
Beyond short-term price movements, the halving of LTC also has broader implications for the Litecoin network
Historically, Litecoin has experienced significant price rises following past halving events.
For example, during the last halving event in 2019, Litecoin experienced a substantial surge in value, reaching its highest point in over a year.
Although past performance does not guarantee future results, market analysts and enthusiasts are closely monitoring these historical trends for indications of potential outcomes for LTC in light of the impending halving.
Reduced mining rewards encourage miners to adopt more efficient and advanced technologies to maintain profitability. This process often leads to network upgrades, mining infrastructure improvements, and enhanced security measures.
As a result, the overall resilience and robustness of the network can increase, benefiting all participants and stakeholders.
As the countdown to the LTC halving continues, the cryptocurrency community anxiously awaits the event’s impact on the Litecoin network and its asset price.
The combination of increased mining activity preceding the halving and the possibility of LTC becoming a scarcer asset has set the stage for an exciting period.
Although the future remains uncertain, the halving of LTC has the potential to thrust Litecoin into the spotlight and define its trajectory in the evolving cryptocurrency market.