Litecoin Network Highly Active with Record Number of Transactions
If you’ve been keeping an eye on the crypto market lately, you may have noticed that Litecoin’s network has been bustling with activity. According to data from market intelligence platform IntoTheBlock, the daily number of transactions on the Litecoin network has reached a new all-time high (ATH). This milestone has been reached despite the fact that Litecoin’s market cap is significantly smaller than that of Bitcoin, which makes it an impressive achievement. Let’s take a closer look at the recent surge in activity on the Litecoin network.
Litecoin Surpasses Bitcoin in Daily Transactions
In a graph provided by IntoTheBlock, you can see how the daily number of transactions on the Litecoin network has surged over the past year. On the 14th of this month, the network recorded about 1.02 million transactions, the highest in its history. What’s even more impressive is that this number is almost double the number of transactions seen on the Bitcoin network on the same day. Considering that Bitcoin is a much larger coin with a market cap that’s over 136 times greater than that of Litecoin, this is a remarkable feat. It shows that despite its size, Litecoin’s network is seeing a tremendous amount of activity.
Active Addresses on the Rise
While the number of transactions tells us about the current activity on the blockchain, the number of active addresses provides additional context. This metric reflects the actual amount of traffic that the network is hosting and includes both senders and receivers. Data from IntoTheBlock shows that the number of active addresses on the Litecoin network has significantly increased, especially in correlation with the spike in transactions. However, despite surpassing Ethereum, Litecoin still lags behind Bitcoin in terms of active addresses.
High Number of Transactions Driven by Lower Costs
One possible explanation for the high number of transactions is that Litecoin offers cheaper transfers compared to other cryptocurrencies. This can lead to higher transaction volumes as holders flock to the network for activities that require a large number of transfers. The data shows that while the number of active users on the Litecoin network may not be as high as that of Bitcoin, the existing users are making a significantly higher number of transactions on average.
LTC Price Struggles to Reflect Network Activity
Despite the impressive metrics for network activity and usage, the value of Litecoin has continued to struggle. Even with high investor adoption and usage, Litecoin’s price hasn’t reflected these positive fundamentals. This discrepancy in the coin’s value is something to keep an eye on as the network continues to see increased activity.
Hot Take
As the Litecoin network experiences a surge in transactions, it continues to outpace Bitcoin in daily activity. However, the real question remains whether this heightened activity will translate into the coin’s long-term value and market position.
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