First Mover Americas: Litecoin Might Be Trading at a Discount

The latest price moves in crypto markets in context for May 19, 2023.

AccessTimeIconMay 19, 2023 at 12:02 p.m. UTC
Updated May 19, 2023 at 3:26 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

This article originally appeared in First Mover, CoinDesk’s daily newsletter putting the latest moves in crypto markets in context. Subscribe to get it in your inbox every day.

Latest Prices

CD

Top Stories

An onchain metric suggests that litecoin (LTC), the 12th largest cryptocurrency by market value, is trading at discounted prices. Litecoin's market value to realized value (MVRV) Z-score was negative at press time. A sub-zero score indicates the cryptocurrency is undervalued relative to its fair value, according to analytics firm Glassnode. The market capitalization is calculated by multiplying the total number of coins in circulation by the crypto’s price. The realized value is a variation of the market cap that adds the market value of coins when they last moved on the blockchain. It excludes all coins lost from circulation (more than 15%) and is said to reflect the real or fair value of the network.

The stablecoin universe continues to shrink and a sustained recovery in crypto prices is unlikely until this stops, JPMorgan said in a research report Thursday. A stablecoin is a type of cryptocurrency that is pegged to another asset, such as the U.S. dollar. “Headwinds from the U.S. regulatory crackdown on crypto, the unsettling of banking networks for the crypto ecosystem and the reverberations from last year’s FTX collapse are weighing on the stablecoin universe which continues to shrink,” analysts led by Nikolaos Panigirtzoglou wrote.

Digital asset financial services firm HashKey Group is planning to raise funds at a $1 billion valuation, according to a Bloomberg report on Friday. The Asia-based HashKey is in preliminary talks to raise between $100 million to $200 million, according to the report, which cited people familiar with the matter. The firm is looking to capitalize on Hong Kong's re-emergence in recent months as a potential crypto hub as the city has looked to formulate a clear regulatory structure for digital assets. Hong Kong is looking to attract crypto firms to its shores as a means of generating greater investment and capital, following a few years of restrictions related to COVID taking their toll on the economy.

Chart of the Day

Source: Ignas | DeFi Research
Source: Ignas | DeFi Research
  • The chart by pseudonymous DeFi analyst Ignas shows that there currently are eight decentralized autonomous organizations (DAOs) with Treasury holdings less than the market capitalization of their respective tokens. (Treasury balances do include holdings of their own coins).
  • Per Ignas, these DAOs can be targeted by the so-called RFV raiders or supposed activist investors looking to take over the DAO to manipulate the price of tokens for financial gains.

Trending Posts

Edited by Stephen Alpher.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Lyllah Ledesma

Lyllah Ledesma is a CoinDesk Markets reporter currently based in Europe. She holds bitcoin, ether and small amounts of other crypto assets.

Omkar Godbole

Omkar Godbole is a Co-Managing Editor on CoinDesk's Markets team.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.