Litecoin Market Cap Crashed More Than $2 Billion in May

Litecoin was among the cryptocurrencies that saw more than a billion dollars wiped off its market value due to the steep decline in digital assets in the crash of May. 

Litecoin remains a top 20 digital asset by market capitalization in June 2022. According to Be[In]Crypto research, LTC closed the fifth month of the year with a market capitalization of around $4.82 billion. 

This was a 30% fall from its market cap at the opening of May. On May 1, LTC saw an impressive trading volume of $592.41 million which corresponded to a market capitalization of approximately $6.98 billion. 

Source: Litecoin Historical Data by CoinMarketCap

Why the sinking market capitalization? 

An overall bearish crypto market led to the dwindling market capitalization of Litecoin. Factors that led to the massive sell-off of LTC by its holders were geopolitical events, rising inflation, a plunge in the stock market, and renewed interest in less volatile assets such as precious metals. 

The number of large transactions involving Litecoin reached a peak of 12,910 on May 18. 

Source: LTC Number of Large Transactions Chart by Into the Block

This corresponded with a large transaction volume of approximately 84.31 million transactions at a price of $70. Overall, this equated to a transaction volume of $5.9 billion.

Source: LTC Large Transactions Volume Chart by Into the Block

On May 18, LTC opened at $72.97 and reached an intraday low of $66.42. Trading volume was around $756.03 million and corresponded to a market capitalization in the region of $4.67 billion. This was a 33% decline in LTCs market value from May 1. 

LTC price reaction 

Litecoin opened on May 1, at $96.17, reached a monthly high of $106.80 on May 4, tested a monthly low of $55.32 on May 12, and ended the month at a trading price of $68.41.

Overall, this equates to a 26% dip between the opening and closing prices of LTC in May. 

Source: LTC/USD Chart by TradingView

The post Litecoin Market Cap Crashed More Than $2 Billion in May appeared first on BeInCrypto.

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