Litecoin (LTC) Returns to Multi-Cycle Lows as New Demand Emerges

Litecoin (LTC) has dropped nearly 60% from last year’s peak and has returned to the lows seen in previous market cycles. Despite remaining one of the more liquid altcoins, LTC has struggled to overcome the market’s increasingly negative pressure.

However, several signals suggest that demand for LTC is still present. This may not lead to an immediate price rebound, but it provides support for Litecoin to endure and wait for a recovery opportunity.

Emerging LTC Demand Despite The Sharp Decline

One notable recent development is that SBI VC Trade, a cryptocurrency exchange under Japan’s SBI Holdings, has expanded its crypto lending services to include LTC.

Japanese users can now lend LTC through the Lending Coin program to earn interest. The program currently supports more than 30 cryptocurrencies, including BTC, ETH, XRP, LTC, BCH, DOT, LINK, ADA, DOGE, and SHIB.

In addition, the latest report from CoinGate — a leading crypto payment gateway that allows businesses to accept cryptocurrency payments — shows that LTC accounts for 17.7% of all payment transactions on the platform. This places it behind only BTC and USDC.

The Ratio of Payments on CoinGate by Altcoin. Source: Coingate

The Litecoin Foundation stated that this figure has increased from 16.4% in December last year.

These developments reflect sustained demand for LTC. Still, the demand remains insufficient to offset the broader selling pressure across the market.

Positive On-chain Signals Help LTC Absorb Selling Pressure

Other on-chain indicators suggest that Litecoin’s internal momentum remains strong and may even be strengthening in early 2026.

For example, Litecoin’s optional privacy layer, MWEB, has set a new record for peg-ins, surpassing 400,000 LTC.

LTC MWEB Balance Over Time. Source: Litecoin

MWEB enhances Litecoin transactions with privacy features, including confidential transactions and stealth addresses. The rising amount of LTC being pegged in indicates growing demand for private on-chain transactions. This trend could help absorb part of the selling pressure.

“Litecoin’s opt-in privacy layer, MWEB, set a new record for peg-ins last month. Real-world utility has been the mission since day one,” Litecoin noted.

Additionally, data from BitInfoCharts highlights a rare divergence between Litecoin’s average on-chain transaction value and its market price.

Litecoin Average Transaction Value vs Price. Source: BitInfoCharts

Typically, the average transaction value moves in the same direction as the price. In recent months, however, while LTC has fallen roughly 55% since October last year, the average on-chain transaction value has continued to rise.

This divergence may suggest accumulation activity from investors who view broader market selling as an opportunity.

Still, with LTC trading around $60 — down 85% from its all-time high and 60% from last year’s top — any recovery is likely to remain a difficult journey.