Litecoin (LTC) price recorded one of the biggest daily losses yesterday when it closed over 18% in the red.Fundamental analysis: Flare Networks will airdrop FLR tokens to Litecoin owners
Flare Networks said it plans to airdrop Spark (FLR) tokens to Litecoin owners ahead of the launch of its mainnet later this year. The blockchain network also said it has slashed the 5 billion tokens originally planned for distribution to cover the airdrop.
Flare said it will integrate with Litecoin to offer DeFi services to the cryptocurrency, allowing LTC “to be used trustlessly on Flare with Ethereum style smart contracts” and pledging “interoperability and composability” for it.
The fourth and the fifth largest digital currencies in the world by market value, XRP and Litecoin, will now both be available on Flare. Last week, LTC and XRP soared more than 28% and 40%, respectively. XRP has surged sharply despite the fact that the company is facing a lawsuit filed by the SEC.
This is the second major Flare airdrop. Last month, the network airdropped 45,827,728,412 Spark tokens, which will be distributed to XRP owners in the first half of this year.
The ratio between XRP and FLR holders is close to 1:1, said Hugo Philion, chief executive and co-founder of Flare Networks. Flare will issue 1.0073 Spark tokens for every XRP token owned by an eligible participant.
While major exchanges including Coinbase, Bittrex, and others have prohibited the trading of XRP, Flare promised XRP holders that they will receive their FLR tokens.Technical analysis: Sharp and fast correction
Litecoin price lost over 18% yesterday to accelerate the correction that has started on Sunday. This move came after the LTC price more than doubled in November and December amid significant buying interest shown in Litecoin.Litecoin daily chart (TradingView)
The correction has stopped near the $110.00 mark, where the key 61.8% Fibonacci retracement level is located. From the technical perspective, the correction may have ended as the pullback is mature enough. The major target on the upside remains the $220 area.Summary
Flare Networks announced its plan to airdrop FLR tokens to holders of Litecoin before its mainnet rollout later this year.