Litecoin surpasses Ethereum in this metric.
The price of Litecoin (LTC) has had a disappointing performance in the second quarter of 2024, despite a positive start to the year. The cryptocurrency has been facing significant bearish pressure over the past day, with one move sending the price down nearly 5%.
Despite LTC’s apparent struggles in terms of price action, the network has witnessed notable growth in recent weeks.
LTC resolves 75% of surge in one day
Activity on the Litecoin blockchain has been increasing recently, according to data from on-chain analytics firm IntoTheBlock. On Thursday, June 8, the number of active addresses on the network surged by more than 75%, surpassing 600,000.
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IntoTheBlock said in a post on the X platform that the recent surge in addresses has pushed the Litecoin network to new highs since January. This means that interest in the LTC blockchain has increased despite the coin’s price decline.
An increase in the number of addresses with balances means the entry of new investors or the return of existing owners to the blockchain (in this case Litecoin). This is often a strong indicator of net adoption or increased trust for a particular network.
Interestingly, the cryptocurrency intelligence company highlighted that this recent rapid growth has put Litecoin ahead of smart contract platform Ethereum in terms of active addresses. According to IntoTheBlock, the network is well ahead of Ethereum by at least 100,000 addresses.
The number of active addresses is not the only area where Litecoin has grown in the past days. Trading volume also increased significantly. The number of LTC transactions on Thursday surpassed 426,000, according to data from IntoTheBlock.
The on-chain analytics platform noted:
Most of the increase is due to transactions under $10, but there is a noticeable increase in transactions of all sizes.
Impact on Litecoin Price
Strong fundamentals and network growth are known to drive the prices of cryptocurrency assets in many scenarios. Simply put, an increase in network activity and users often translates into an increase in network value.
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However, the impact of network fundamentals on asset prices is anything but straightforward. In the case of Litecoin, the price has not seen much positive development since its recent on-chain disclosure.
As of this writing, the price of LTC is around $80.28, down 4.5% over the past day.
Featured image from Getty, chart from TradingView
