Litecoin [LTC], valued at $114, was placed fifth by market cap on the cryptocurrency ladder. However, in terms of trading volume over the last 24 hours, the silver crypto was ranked fourth on CoinMarketCap.
Several other metrics have also been in favor of the crypto-asset, according to Franklyn Richards, Director of the Litecoin Foundation. In a recent blog post, Richards cited that LTC’s onchain metrics had remained static until May 2019. Significant activities on the network were noted, following several analysts citing increased adoption and the upcoming halving as the reasons behind a series of upswings posted by the digital coin.
Citing Bitinfocharts.com as the source, the Director alluded that the network’s data for USD skyrocketed to $1.6 billion on May 16. The last high of $2.66 billion was recorded on February 17, 2018, after which the coin failed to post impressive figures. Richards also noted that the figures still paled in comparison to the massive $12.5 billion recorded during the 2017 glory days.
Another metric that the Director observed was Average Transaction Volume. On 16th May 2019, the Average Transaction Volume was found to be $47.2k. The last time the network breached the peak was on 13 February 2018, recording figures over $65k. Talking about the increase in transactions from $7k to $20k and the recent peak, Richards asserted,
“Such sizeable transactions indicate the network is still primarily being used by affluent individuals to avoid traditional monetary transfer fees or as a speculative asset in which to invest. Not that this is necessarily bad, however, it runs contrary to the idea of these networks being used by the everyman for smaller daily payments.”
He also stated that users have started leveraging Lightning Network [LN] transactions for micro-transactions, while those in onchain remain macro, where “routing larger volumes” would not be feasible.
Active Addresses on the Litecoin network reached 129.56k on 8 April 2019 from a low of 50k in the same month. The figures decreased soon after and as of 27 May, the number of active addresses accounted for 65k on the network. This however, is not a good indicator of the increase in network participants, as issuing a large number of addresses is commonly practiced by crypto-exchanges, he cited.
He further noted that the number of daily transactions had increased from 20k to 27k. Despite the fact that the figures stale when compared to the previous transactions during the time when LTC was priced at $400, he stated that “intrinsic usage is starting to pick up” pace. Richards further speculated,
“Price has by far and away ran away from any onchain metrics meaning while this growth is positive it is not currently sustainable and we could see a pullback. Otherwise, we may risk finding ourselves in another bubble scenario sooner than we realize.”
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