Litecoin recently recorded its highest weekly trading volume since May 2023, according to on-chain data. Here’s what this means for asset prices.
Litecoin trading volume has been increasing recently.
In a new post on X, Litecoin Foundation Marketing Director Jay Mila noted that the LTC network has experienced significant trading volume over the past week. “Transaction volume” here refers to an on-chain metric that tracks the total amount of Litecoin involved in transactions on the network each day.
A high value of this metric means that users are moving a lot on the blockchain. This trend means that there is a high interest among investors in trading assets.
On the other hand, a low indicator means that the holders may not be paying much attention to the cryptocurrency as they are not transferring too much money.
Here is a graph showing the trend of Litecoin trading volume over the past few months.
The value of this indicator appears to have increased in recent weeks. Source: @MillaLiraj from X
As shown in the graph above, Litecoin’s trading volume has increased recently, suggesting an increasing amount of activity in which users are participating. In the past week alone, the network has seen movements amounting to 512.8 million LTC, equivalent to almost $35.4 billion at the cryptocurrency’s current exchange rate. This means that, on average, the chain generates more than $5 billion in transaction volume every day.
In general, large amounts of network activity can lead to fluctuations in asset prices. This is because all these simultaneous movements provide the fuel needed for rapid movement. However, the volatility arising from this can go in either direction. In fact, this recent heavy volume of trading may correspond to selling activity, as Litecoin has been declining in recent days.
However, what is constructive is the fact that this indicator has been trending upward for some time now. This may suggest that this activity does not reflect a passing fad, but rather organic growth.
Litecoin is known for its cheap and fast transactions, so it has historically tended to perform well in terms of metrics related to network activity. With this quality, it seems that it will still be able to attract the interest of users.
As for how LTC fits into the bigger picture, market intelligence platform IntoTheBlock has shared a graph comparing the trading volumes of major coins in the sector.
Stablecoins seem to be at the top of the list | Source: IntoTheBlock on X
Stablecoins USDT and USDC have been dominating the market lately, with their volumes reaching $29 billion and $28 billion, respectively. Bitcoin ranks third after these assets, with an index of $17 billion.
Therefore, although Litecoin has been growing recently, its volume is still less than a third of the original cryptocurrency.
LTC price
At the time of writing, Litecoin is trading around $69, down more than 2% over the past week.
The price of the coin seems to have fallen recently | Source: LTCUSDT on TradingView
Dall-E, Featured Image from IntoTheBlock.com, Chart from TradingView.com
