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.
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.
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.
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.