There are now over 2 million Litecoin addresses, which shows just how popular the cryptocurrency is becoming.
However, the news didn’t help Litecoin prices, which dropped 11.89% today.
In other news, Bitcoin prices dropped more than 7.5% and slipped below $14,300. The downturn came after South Korean financial regulators introduced a new slate of rules surrounding the cryptocurrency industry.
The so-called “crackdown” on the cryptocurrency industry featured a warning that South Korea may shut down exchanges if traders and exchange operators fail to comply with new regulations.
The downturn also coincided with remarks from Allianz SE and former Pimco CEO Mohamed El-Erian.
The economist said that Bitcoin’s price decline comes at a precipitous time for the cryptocurrency. Following Bitcoin’s 45% plunge on Dec. 22, institutional investors have largely sat out, even though prices have rebounded.
El-Erian suggests that the lack of institutional interest could affect the price of the asset to the downside.
“Either this sharp price correction will act as a catalyst for expanding what, until now, has been quite limited institutional involvement in this market – or it will become a stage in the deflation of a remarkable and historic asset bubble,” he said in column at Bloomberg View.