- Litecoin surpasses Ethereum in active addresses, marking an unprecedented surge in on-chain activity since December, indicating demand for the “digital silver.”
- Daily transaction volumes for Litecoin soared to approximately $19 million in December, a substantial uptick from previous months.
- Despite strong on-chain metrics, Litecoin’s stagnant price amid heightened activity indicates other market forces limiting notable upward momentum.
In a surprising turn of events, Litecoin (LTC) has demonstrated a remarkable surge in on-chain activity, surpassing Ethereum (ETH) in active addresses since the onset of December. IntoTheBlock, an on-chain analytics firm, revealed an exceeding active address count, signaling an unprecedented demand for Litecoin, often called the “digital silver.”
Alongside this upsurge, Litecoin experienced a significant uptick in its transfer volumes. According to Santiment data, there was a surge in daily transaction volumes, averaging approximately $19 million throughout December. This notable spike represents a substantial increase from the preceding two months, during which transaction volumes ranged between $16 million to $17 million.
During this heightened period of activity, the NVT ratio, recognized for its inverse correlation with transaction volumes, exhibited a decline. This notable adjustment indicated that the network’s utilization outpaced the expansion in market capitalization, a historical precedent signaling a potentially bullish trend for the cryptocurrency in question.
Despite the surge in traffic, Litecoin’s network usage fees remained strikingly low. Glassnode data illustrated that on December 19, Litecoin recorded 1.19 million transactions, surpassing Ethereum’s count of 1.13 million. However, the cost contrast was stark, with Litecoin charging a mere $0.0019 per transaction, significantly lower than Ethereum’s average rate of $12.19. Ethereum’s persistently high gas fees have long posed scalability challenges, triggering the emergence of various scaling solutions.
Intriguingly, whales appeared to diverge from the coin, as Santiment’s data revealed a noteworthy drop in transactions valued at least 100,000 over the past ten days. This transaction decline might be attributed to a bearish sentiment surrounding the asset, as reflected in the Weighted Sentiment indicator, which trended negatively after the initial week of December.
Despite these impressive on-chain indicators, Litecoin’s native token, LTC, exhibited minimal movement in the last 24 hours of trading. Litecoin is trading at $71.02, marking a 1.61% surge in the last 24 hours and a 1.32% decrease over the past week. Despite the flurry of activity, the 18th-largest cryptocurrency by market capitalization failed to experience any significant upward pressure.
