Initiatives to improve the Ethereum network cause the broad difference between the percentages of LTC and ETH holders. A stagnant state forces Litecoin to take a bearish outlook along with the overall market, a trend that will continue worsening.
Although Litecoin (LTC) is on the list of the best altcoins to buy, it recently fell victim to the volatility in the overall crypto market.
Litecoin is trading at around USD 53.02 and has accumulated a 0.6% loss over the last 24 hours. While its trading volume is above USD 353.95 million, its market capitalization is about USD 3.77 billion, according to CoinGecko.
LTC seems to be facing the same difficulties as Ether (ETH), the second-largest cryptocurrency by market capitalization. However, considering the percentage of holders who make a profit, there is a considerable disparity.
Litecoin Holders Face a Difficult Situation regarding Profits
According to TipRanks, only 15% of Litecoin holders recently made a profit, 12% were status quo, and 74% suffered considerable losses. That happened before the price started to drop below USD 53.
In contrast, the data shows that 51% of Ether holders made a profit, 46% suffered a loss, and the remaining 3% were at a breakeven point.
Due to initiatives to improve the Ethereum network, the broad difference between the percentages of the two altcoins is not surprising.
On the other hand, Litecoin had to suffer losses that caused it to derail its momentum.
The Stagnant State of the Network Causes LTC to Drop
One of the reasons why LTC has not caught up with ETH is that the Litecoin network has little to no activity.
A stagnant state forces Litecoin to take a bearish outlook along with most cryptocurrencies on the market. Over the last few weeks, the situation in the crypto industry has worsened the trend.
Despite some difficulty maintaining the USD 1,500 level, Ether has been subject to excitement from the crypto community. The Ethereum network recently transitioned to the proof-of-stake (PoS) consensus protocol through the Merge upgrade.
Even though the milestone event could not deliver the expected rally of the leading altcoin, it gave holders and investors something to anticipate.
Although Ether Is a Volatile Cryptocurrency, It Is Profitable
Many more investors seem to have benefited from Ether than from Litecoin. While only 14% of LTC holders make a profit, 51% of ETH investors do.
Although 12% of LTC holders manage to break even, 74% of investors suffer losses. Profitable ETH holders trade the crypto asset at around USD 1,320, and 46% of investors suffer losses.
The Litecoin blockchain has experienced many losses over the last year, contrary to Ethereum. Ether has generally maintained a bullish outlook thanks to several projects to improve the network.
Following the announcement of the Merge upgrade, the excitement about Ether among investors has increased. Since it succeeded in transitioning from Proof of Work (PoW) to PoS, many more people will feel attracted to it for a long.
Meanwhile, Ether is trading at around USD 1,309 and has accumulated a 1.4% loss over the last 24 hours. While its daily trading volume is above USD 13.68 billion, its market capitalization is about USD 365.23 billion, according to CoinGecko.
By Alexander Salazar
