The price of Litecoin (LTC) showed one of the biggest daily losses, closing in the red at over 18%.
Fundamental analysis: Flare Networks to release FLR tokens for Litecoin owners
Flare Networks said it plans to launch Spark tokens (FLRs) for Litecoin owners ahead of its core network launch later this year. The blockchain network also said it had scaled back the 5 billion tokens initially planned for distribution to cover the launch.
Flare said it would integrate with Litecoin to offer DeFi services to the cryptocurrency, allowing LTC "to be used with confidence on Flare with Ethereum-style smart contracts" and promising "interoperability and composability".
The world's fourth and fifth largest digital currencies by market value, XRP and Litecoin, will now be available on Flare. In the past week, LTC and XRP have risen by over 28% and 40% respectively. XRP rose sharply despite the fact that the company is facing a lawsuit filed by the SEC.
This is Flare's second major launch. Last month, the network launched 45,827,728,412 Spark tokens, which will be distributed to XRP holders in the first half of this year.
The ratio of XRP to FLR holders is close to 1:1, said Hugo Philion, CEO and co-founder of Flare Networks. Flare will issue 1.0073 Spark tokens for each XRP token held by an eligible participant.
While major exchanges, including Coinbase and Bittrex, have banned XRP trading, Flare has promised XRP holders that they will receive their FLR tokens.
Technical analysis: strong and rapid correction
The Litecoin price lost over 18% yesterday, accelerating the correction that began on Sunday. The move comes after the LTC price more than doubled in November and December, amid strong interest in Litecoin.
The correction has stopped near the $110 mark, where the key 61.8% Fibonacci retracement level is located. From a technical point of view, the correction could be over, as the retracement is sufficiently mature. The main upside target remains the $220 zone.
Summary
Flare Networks has announced plans to release FLR tokens to Litecoin holders ahead of the launch of its core network later this year.
