According to on-chain data, Litecoin transaction volume has more than doubled in the last year, a potentially positive sign for the network.
Litecoin trading volume has shown a steady increase recently
Litecoin Foundation Director Jay Mira discussed the growth in on-chain activity that LTC has witnessed in a new post on X. The metric of relevance here is “trading volume”, which tracks the total amount of cryptocurrencies involved in the transfer.
As the value of this metric increases, it means users are moving more tokens around the network. These trends mean that interest in the use of blockchain is increasing.
On the other hand, a decline in this indicator suggests that activity on the network is cooling down, which is a potential sign that investors are not paying as much attention to cryptocurrencies.
Here is a graph showing the trend of Litecoin trading volume over the history of the asset.
The value of this indicator appears to be trending upward in recent months. Source: @MillaLiraj from X
As shown in the graph above, Litecoin trading volume was around 196.55 million LTC a year ago, and now the value of the indicator has increased to 412.37 million LTC.
Clearly, network activity increased significantly during this period. This means that investor interest in movement on the network is surging. LTC has historically performed well on such activity-related metrics due to the fact that blockchain provides cheap and fast transactions.
Cryptocurrency payment processor BitPay recently announced the results of its 2024 Crypto Champions, and Litecoin performed similarly well. In particular, LTC achieved remarkable results in the “Most Comprehensive Transaction” category, beating out Bitcoin (BTC), Ethereum (ETH), and others to take first place.
Top 3 BitPay 2024 Crypto Champions | Source: BitPay
The cryptocurrency also ranked second in the “Most Frequently Purchased” and “Most Purchased Gift Cards” categories, giving up the number one spot to Bitcoin in both categories.
Although Litecoin is performing well in terms of activity, the asset has not yet been able to reflect this growth in price. In fact, during the period when trading volume doubled, the coin’s value fell by more than 6%.
Therefore, LTC, as is the case with many other cryptocurrencies, appears to be used primarily by those looking for a trading mode and not by those trading for speculative purposes.
LTC price
Litecoin witnessed a drop of more than 5% in the past 24 hours, with the price rising to the $62 level. The chart below shows how the coin’s recent trajectory has been.
It looks like the price of the coin has plummeted in the past day | Source: LTCUSD on TradingView
Dall-E, Featured Image from IntoTheBlock.com, Chart from TradingView.com
