Wrapped Litecoin (WLTC) gained its first decentralized pair on Uniswap against Ethereum (ETH), just two weeks after the token's creation.
WLTC's Launch and Features
Litecoin (LTC) was tokenized as Wrapped Litecoin (WLTC), making its debut on November 13, and has already entered the DeFi space with its first pair on Uniswap. Unlike ETH and BTC, LTC was rarely used as a wrapped asset. There are expectations that WLTC can be used in Aave vaults. LTC holders are primarily individual investors with a culture of long-term holding. Up to 20% of the supply has been held for more than five years.
Impact on Market and Traders
WLTC's launch coincided with another LTC rally on centralized exchanges. The 'dinosaur' has started trading above $101. WLTC's high liquidity will appeal to DEX traders that will not need a separate Litecoin wallet. WLTC allows holders to store assets through MetaMask and participate in DeFi. Although using WLTC might not always been cheaper due to ERC-20 token fees.
Risks and Future Prospects of WLTC
WLTC remains a niche asset with an illiquid pool, trading at a premium of $123. The token promises simple wrapping storage, but the illiquid pair may limit trader access. Initially available only on a few addresses, the token has growth potential, but requires community involvement to boost liquidity and popularity. Coinut is promoting WLTC, but its supply remains limited.
WLTC offers an innovative solution for LTC holders to participate in DeFi without a separate Litecoin wallet. Potential trader attraction and arbitrage opportunities may drive the token's momentum in the future.
