Will LTC’s Momentum Continue and Drive Price to New All-Time High?

Crypto
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  • Litecoin (LTC) made history with over one million daily transactions, surpassing Bitcoin in a single day, showcasing its growing importance in the cryptocurrency world.
  • Despite its network activity surge, LTC’s price declined by 5% in the past week due to profit-taking by traders who gained during the previous market rally.

On November 14th, Litecoin made history by processing more than one million transactions in a single day. This achievement underscores the growing popularity and utility of Litecoin as a medium for digital transactions. Surprisingly, Litecoin’s daily transaction volume on this day nearly doubled that of Bitcoin, a cryptocurrency widely regarded as the gold standard in the industry.

According to data from IntoTheBlock and Litecoin’s official X handle, they reported a staggering 1.3 million transactions on that historic day, while Bitcoin lagged with only 430,000 transactions. This notable disparity in transaction volume challenges the conventional notion that Bitcoin dominates the cryptocurrency space.

Rising Daily Active Addresses Indicate Strong Network Utilization

A surge in daily active addresses, a key indicator of network utilization and user activity, accompanies Litecoin’s impressive transaction volume. With 797,000 daily active addresses, Litecoin comes remarkably close to Bitcoin, which boasts 960,000 daily active addresses. This data suggests that Litecoin’s network is experiencing robust utilization and has a substantial and active user base.

Ethereum, another major player in the cryptocurrency market, follows closely with 405,000 daily active addresses. While Ethereum trails behind in this metric, it remains one of the networks with the most active users.

The increasing demand for Litecoin Ordinals is attributed to Litecoin’s surge in transaction activity. Just a day before the spike in network activity, Litecoin reported a remarkable milestone with 300,000 new inscriptions on the network in the past week. This surge in Ordinals demonstrates the cryptocurrency’s appeal and utility in conducting transactions.

LTC Price Performance

Despite its impressive network activity, Litecoin’s native token, LTC, did not experience significant price growth. At the time of writing, LTC is trading at $68, representing a 2% decline in the last week. The steady growth in profit-taking activity among traders can attribute to this price fluctuation.

Litecoin had witnessed substantial price gains during the general market rally in the previous month. However, traders who had acquired LTC during this rally and are now holding it above their cost basis have opted to sell their holdings, leading to the current price correction.

Transaction Profitability and Trading Activity

An assessment of LTC’s day-to-day transaction profitability reveals an interesting trend. For every transaction resulting in a loss, 1.16 transactions end in profit. This profitable nature of LTC transactions has encouraged more coin holders to divest their holdings, contributing to the coin’s price decline.

As network activity increased, the total amount of fees paid to miners also saw a spike. However, the average fee paid per transaction by network users decreased, indicating that the network did not experience congestion. This is a positive sign, as network congestion often increases transaction fees.

Litecoin’s Monthly Surge and Growing Confidence

Litecoin has experienced a monthly surge of approximately 20%, briefly surpassing the $74 mark. This upward trend aligns with the cryptocurrency market’s broader resurgence. The increased network activity has played a pivotal role in Litecoin’s price performance.

Data compiled by IntoTheBlock reveals that active addresses on the Litecoin Network have reached a six-month high. On November 13th, the count of active addresses soared to 979.55k, breaking the previous record of 719.3k in May. This surge comes mainly from the launch of the LTC-20 token standard.

Furthermore, the total number of addresses with a balance has peaked, marking a year-to-date increase of over 40%. This data reflects confidence in Litecoin as an asset and its utility in the cryptocurrency ecosystem.

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