On-chain data shows that Litecoin transaction volume has more than doubled over the past year, a sign that could be positive for the network.
Litecoin transaction volume has shown steady growth recently
In a new mail At X, Jay Milla, director of the Litecoin Foundation, has talked about the growth in on-chain activity that LTC has experienced. The relevant indicator here is the “transaction volume”, which tracks the total amount of cryptocurrency involved in transfers.
When the value of this metric increases, it means that users are moving a larger amount of tokens on the network. This trend implies that interest in using the blockchain is increasing.
On the other hand, the declining indicator suggests that network activity is cooling down, a potential sign that investors are paying less attention to cryptocurrencies.
Now, here is a chart showing the trend in Litecoin trading volume over the asset’s history:
The value of the metric appears to have been on the way up in recent months | Source: @MillaLiraj on X
As shown in the chart above, Litecoin’s trading volume was around 196.55 million LTC a year ago, but today, the value of the indicator has grown to 412.37 million LTC.
It is clear that the network has seen a huge increase in activity over this period, meaning that investor interest in making moves on the network has skyrocketed. LTC has historically performed well on activity-related metrics like this, due to the fact that the blockchain offers cheap and fast transactions.
Cryptocurrency payment processor Pay per bit The recently announced results of its Crypto Champions 2024 and Litecoin also did well there. In particular, LTC did well in the “most transactions overall” category, outperforming cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) to first place.
The top three in the BitPay 2024 Crypto Champions | Source: BitPay
The cryptocurrency also came in second in the categories of “most frequently purchased” and “most gift cards purchased,” losing out to Bitcoin for the top spot in both.
While Litecoin has been performing well in terms of activity, the asset has not yet been able to translate this growth into its price. In fact, in the period when its transaction volume doubled, the value of the coin fell by more than 6%.
Therefore, LTC seems to be used primarily by those looking for a mode of transactions and not by those who do it for speculation, as is the case with many other cryptocurrencies.
LTC Price
Litecoin has seen a drop of over 5% over the past 24 hours, bringing its price down to the $62 level. The chart below shows what the coin’s recent trajectory has been like.
Looks like the price of the coin has incurred a sharp drop in the past day | Source: LTCUSD on TradingView
Featured image by Dall-E, IntoTheBlock.com, chart by TradingView.com
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