Litecoin’s network activity has surged to new heights, reaching an all-time high in active addresses just four months after its most recent halving event. This remarkable development is attributed to several factors, including the adoption of the LTC-20 token standard and a significant increase in wallet balances
Litecoin’s active addresses soar to all-time high
Litecoin’s network has experienced a surge in activity, with the number of active addresses recently surpassing 1.4 million. This milestone comes shortly after active addresses reached a six-month high in mid-November, totaling 979,550. This rapid growth in active addresses is a testament to Litecoin’s increasing popularity and utility within the cryptocurrency ecosystem.
One significant contributor to the surge in active Litecoin addresses is the adoption of the LTC-20 token standard. Built on top of the Litecoin Ordinals Protocols, this standard is a branch of Bitcoin’s BRC-20 standard.
It serves as an experiment to demonstrate that users can create off-chain balance states with inscriptions. The introduction of LTC-20 tokens has enabled the creation of fungible tokens on the Litecoin network, further expanding its use cases and attracting more users.
In addition to the increase in active addresses, Litecoin wallets with a balance have also reached new highs, recording a year-to-date increase of more than 40%. This surge in wallet balances indicates growing interest and investment in Litecoin as users choose to hold and transact with the cryptocurrency. The rising number of wallets with a balance reflects confidence in Litecoin’s long-term potential.
Record-breaking transaction volume
Litecoin has also witnessed a surge in transaction volume, reaching an all-time high of 1.09 million on November 14. Interestingly, this transaction volume exceeded that of Bitcoin, which was around 523,284 at the time.
On December 8, Litecoin’s transactions once again surpassed Bitcoin’s, totaling 846,561, while Bitcoin’s transaction volume remained at 411,321. These high transaction volumes demonstrate Litecoin’s utility as a means of transferring value.
Litecoin’s native token, LTC, has mirrored the network’s resurgence by experiencing a notable price increase. It joined the broader cryptocurrency market rally, reaching $77 on December 10 before a 7% correction to its current valuation of $72.45, as per data from CoinMarketCap. This upward movement is particularly noteworthy as it marks LTC’s first major price rise since its third halving event in early August.
Halving events and price history
Historically, halving events in the cryptocurrency space have often driven the prices of affected assets upward, as seen in the case of Bitcoin’s three consecutive halvings. However, Litecoin’s experience with halving events has been somewhat different.
In the last halving event, LTC’s price actually decreased shortly after the event, contrary to the typical post-halving price surge observed in other cryptocurrencies. This demonstrates the unique dynamics at play within the Litecoin ecosystem.
