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Share link:In this post: WLTC was minted on November 13, launching its first pool against WETH on Uniswap V3. WLTC traded at a premium of $123, though in a very illiquid pair. LTC appreciated above $101, though still waiting for its big breakout during this bull cycle.
Wrapped Litecoin (WLTC) gained its first decentralized pair on Uniswap, now building up liquidity against Ethereum (ETH). The pair launched two weeks after the creation of the WLTC token.
Litecoin (LTC), one of the oldest legacy cryptos, was tokenized as Wrapped Litecoin (WLTC). The token launched on November 13, and has already entered DeFi space with its first Uniswap pair.
Unlike ETH and BTC, LTC was rarely used as a wrapped asset. The success of WETH and WBTC came from their usage as collaterals. There are some expectations that WLTC can be used in Aave vaults, tapping the value of idle coins.
Whales hold only a small fraction of LTC, with most coins in the hands of investors or retail buyers. The coin also has a culture of long-term holding and accumulation, with an average holding time of 2.6 years. Up to 20% of the supply has been held for more than five years.
The launch of WLTC trading coincided with another LTC rally on centralized exchanges. The ‘dinosaur’ coin reawakened to trade again above $101. LTC is highly liquid, but it is harder to reach for new retail traders. The WLTC market may get a boost from DEX traders that will not have to host the specific Litecoin wallet.
After the wrapping mechanism, traders will be able to store LTC through MetaMask and participate in the highly liquid DeFi ecosystem. There is no guarantee that using WLTC will be cheaper or smoother, as sending LTC may still incur lower fees compared to Ethereum ERC-20 tokens.
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The announcement of the WLTC token arrived just weeks after the Litecoin account started rebranding itself as a meme coin. However, the meme part did not take off, as LTC has a different trading profile, requiring a self-custodial wallet and a KYC registration to an exchange. A Uniswap V3 pair can be used without verification, and the wrapping contract will be permissionless.
WLTC starts out as a niche asset
The tokenized version is still not reliably priced due to its very illiquid pool. WLTC traded at a premium, reaching $123, while the spot version remained just above $101.
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