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Following a tumultuous start to April, the crypto market found itself in a sea of red. As an outlier to this trend, Litecoin stood out among the top 100 assets as it shows bullish movement, owing partly to its classification as a commodity by the Commodity Futures Trading Commission (CFTC).
Litecoin – formerly part of the top 10 crypto by market cap – has faced severe setbacks over the years. Now ranked at the 19th spot, the silver crypto is showing signs of a resurgence.
Litecoin Bucks Trend
According to IntoTheBlock’s latest findings, this move drove Litecoin’s performance, resulting in 75% of LTC holders currently sitting on profits.
The crypto analytic platform said that all eyes are on a key on-chain resistance at around the $150 threshold. Historically, this level has been marked by the acquisition of 8.16 million LTC held by 590,000 addresses and presents a major resistance point, considering these holders have been at a loss since December 2021.
“LTC is currently one of the select few assets in the top 100 that’s in the green today, showing strong performance ever since it was labeled a commodity by the CFTC. This move has led to 75% of $LTC holders now being in profit.”
Monday’s dump dragged Litecoin below $95, but the subsequent recovery was swift. The crypto asset was currently trading at $101, up by nearly 15% over the past month. Further analysis by Santiment revealed that Litecoin has even outpaced other altcoins in terms of a market rebound.
The on-chain transaction volume on the network spiked as the price topped at the end of March. Meanwhile, LTC dormant whale wallets were found to have been moving coins back into circulation, suggesting that the big price bounce is “justified.”
Litecoin is a Commodity
While the CFTC and the SEC continue to battle for control over crypto regulation, the former recently categorized Litecoin as a commodity in a legal dispute involving the crypto exchange KuCoin. This move exempted the crypto from the SEC’s oversight, which imposes stricter regulations on coin issuers regarding securities.
The complaint stated,
“KuCoin solicited and accepted orders, accepted property to margin, and operated a facility for the trading of futures, swaps, and leveraged, margined, or financed retail transactions involving digital assets that are commodities including Bitcoin (BTC), Ether (ETH), and Litecoin (LTC).”
This article first appeared at CryptoPotato
