Litecoin Not To Be Overlooked, Analytics Firm Says: Here’s Why
2024-12-11
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The market intelligence platform IntoTheBlock has explained why Litecoin (LTC) isn’t an asset to be overlooked based on its on-chain metrics.
Litecoin Has Continued To Witness Significant Activity Recently
In a new post on X, IntoTheBlock has discussed what the various key on-chain indicators have been like for the Litecoin network recently. Below is the infographic shared by the analytics firm.
According to the data, there are currently around 370,000 daily active addresses on the Litecoin blockchain. An address is said to be ‘active’ when it participates in some kind of transaction activity on the network, whether as a receiver or sender.
The metric’s value basically tells us about the amount of users that are using the cryptocurrency. Another indicator, the daily transactions, provides information about the exact measure of activity that these users are taking part in.
At present, LTC users are making 200,000 transactions every day. IntoTheBlock has pointed out that this level of user activity is higher than on other networks like Dogecoin (DOGE) and Cardano (ADA).
“Much of this activity stems from Litecoin being one of the few cryptocurrencies actively used for payments,” notes the analytics firm. LTC offers cheap and fast transactions, so it has always been a network preferred as a mode of payments. The activity-related metrics continuing to be high (in fact, further growing over the past month) implies this selling point of the chain is still attracting users.
Another metric in the infographic that correlates to activity is transaction volume, which keeps track of the daily total amount of USD value that’s being transferred to the network. Impressively, this indicator currently stands at $10.27 billion, which is higher than the coin’s total market cap.
While Litecoin is continuing to do well in terms of activity-related metrics, the cryptocurrency has remained stagnant in terms of price growth. A result of this is that just 72% of the addresses on the network are sitting in some unrealized gain.
Of course, this still means the majority are above water, but other networks like Bitcoin (BTC) have it close to the 100% mark right now due to the bull run. That said, another way to look at this could perhaps be that Litecoin has more relative room to run, since the risk of a mass selloff goes up the more investors get into profits.
It seems that a strong majority of the Litecoin userbase also thinks similarly, as 78% of the 7.94 million Litecoin holders have been HODLing since more than a year.
“As one of the older Layer 1 networks still seeing significant usage, Litecoin shouldn’t be overlooked,” says IntoTheBlock. It only remains to be seen, however, whether LTC can finally translate its positive on-chain metrics into price appreciation or not.
LTC Price
Litecoin has suffered a plunge of around 8% over the last 24 hours, which has taken its price to $113.