Litecoin Sees Surge in On-Chain Activity
In a single day on December 20, Litecoin witnessed a significant surge in on-chain activity, with the number of new addresses hitting 1.27 million. This surge is the largest in the past two years, indicating increased usage of the network.
LTC’s Puzzling Performance
Despite the increase in activity, Litecoin’s value experienced a dip. One potential driver behind the surge in activity is the inscription frenzy, where over 10 million ordinals were inscribed on the Litecoin blockchain. However, this robust activity did not have a major impact on the value of Litecoin.
The liquidation levels remained low, indicating that there was not a significant amount of LTC being forced to be sold due to margin calls. While there was selling pressure near the $72 price mark, LTC still rallied.
Solana Outperforms the Market
Compared to other altcoins by market cap, Litecoin is considered underperforming. Solana has seen impressive performance, reaching its highest price in 20 months at over $114. Solana memecoins, particularly Bonk, have captured investors’ attention and sparked similar projects.
The Solana DeFi ecosystem is also gaining traction, with Orca processing over $750 million in trading volume. As a result, Solana has surpassed XRP to become the 5th largest cryptocurrency by market capitalization.
Hot Take: Brighter Future for Crypto Prices
As we approach 2024, there are reasons to believe that we will see higher prices across the crypto complex. The recent market recovery has shown that crypto assets were undervalued and are now being recognized as such. While there may be a social cost associated with higher prices, the future looks brighter for crypto prices.
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