Litecoin Network Activity Increases, Reaching 401,000 Daily Active Addresses

Litecoin has had an impressive rise this year, rising almost 50%. The latest market crash, however, briefly dragged the altcoin below $87. The selling pressure has since eased, with Litecoin currently trading above $107.

The basis of its price trajectory is the strong growth of the network.

Litecoin network share increases

Litecoin network activity has witnessed a remarkable increase. In fact, data compiled by IntoTheBlock revealed that the average daily active addresses increased to 401,000 compared to 366,000 in 2023. Meanwhile, activity on the network peaked in early January, reaching an impressive 1.37 million active addresses in a single day, surpassing the daily activity of both. Bitcoin and Ethereum at the time.

This increase demonstrated the growing utility and user engagement of the protocol amid a bullish season in the crypto industry.

Litecoin has also shown long-term investor confidence, as evidenced by data revealing that 53.9% of all LTC ever mined have remained stationary for more than a year, which indicates that a large part of its supply remains off the market.

Additionally, 85.8% of all LTCs have been held for more than a month, highlighting the preference for sustained ownership among investors. The average holding time for LTC is 2.4 years, suggesting that many holders are not only committed, but also see it as a long-term investment.

What’s Next for Litecoin?

A crypto analyst predicted that Litecoin could break its previously established ATH and reach $500 in the ongoing bull market.

While he acknowledged that its growth trajectory may seem slow compared to other crypto assets, he highlighted its strong fundamentals and historical resilience as key drivers for the bullish momentum.

Another drew comparisons between the current behavior of the Litecoin market and its performance during the 2017 bull run and suggested that history may be about to repeat itself. The cryptocurrency appears to be showing promising signs of breaking out of its ongoing consolidation phase, with the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicators indicating bullish momentum.

These technical signals indicate that the crypto asset could be preparing for a rally, positioning it as a potential “dark horse” in the upcoming crypto rally.

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