Ethereum
Litecoin surpasses Ethereum in this metric
THE Litecoin price (LTC) had a disappointing performance in the second quarter of 2024, despite a positive start to the year. The cryptocurrency has faced significant bearish pressure over the past day, with its price dropping almost 5% in one move.
Despite LTC’s apparent struggles in terms of price action, its network has seen remarkable growth in recent weeks.
LTC resolves 75% spike in a single day
According to data from on-chain analytics firm IntoTheBlock, activity on the Litecoin blockchain has increased in recent times. Thursday June 8, the number of active addresses on the network jumped by more than 75% to exceed 600,000.
IntoTheBlock revealed – via a post on the platform – that this latest spike in addresses has pushed the Litecoin network to a new high since January. This suggests increased interest in the LTC blockchain despite its coin’s pricing struggles.
When the number of addresses with an increasing balance, this implies the entry of new investors or the return of old owners into a blockchain (Litecoin, in this case). This is often a strong indication of net adoption or growing trust in a particular network.
Interestingly, the crypto intelligence firm highlighted that this recent growth spurt has propelled Litecoin ahead of the smart contract platform. Ethereum in terms of active addresses. The network is well ahead of Ethereum by at least 100,000 addresses, according to IntoTheBlock.
The number of active addresses is not the only area where Litecoin has seen growth over the past day. Trading volume has also seen a significant increase. According to data from IntoTheBlock, the number of LTC transactions exceeded 426,000 on Thursday.
The on-chain analytics platform noted:
While most of the increase was driven by transactions under $10, there was a notable increase in transactions of all sizes.
Impact on the price of Litecoin
Strong fundamentals and network growth are known to determine the price of crypto assets in many scenarios. In simple terms, a increased network activity and users often results in an increase in network valuation.
However, the impact of network fundamentals on asset prices is never simple. In the case of Litecoin, its price has not seen any significant positive development since the last on-chain reveal.
At the time of writing, the LTC price stands at around $80.28, reflecting a 4.5% decline over the past day.
Featured image from Getty, chart from TradingView