On-chain data shows that the Litecoin daily active addresses index has seen a significant increase this year compared to the last index.
The average active addresses for Litecoin have increased significantly this year
In new mail On X, market intelligence platform IntoTheBlock discussed the year-on-year growth in daily active addresses for Litecoin. “Daily Active Addresses” refers to a metric that measures the total number of addresses that engage in some type of transaction activity on the network each day.
When the value of this indicator rises, it means that the unique number of addresses making transfers on the blockchain is rising. Since the unique number of addresses can be equal to the unique number of users, this kind of trend means that traffic on the chain is increasing.
On the other hand, a metric recording a decline indicates that investor interest in the cryptocurrency may be waning as not many users are participating in on-chain activity.
Now, here’s a chart showing the trend in daily active Litecoin addresses over the past year:
Looks like the value of the metric has been flat in recent months | Source: IntoTheBlock on X
As can be seen in the chart above, daily active Litecoin addresses started 2024 very strongly, but the metric slowed shortly after. There have been some bursts of activity since then, but overall, the index has shown a steady sideways trajectory.
On average, there were about 401,000 addresses interacting on the blockchain daily this year. While this is significantly lower than the massive spike of 1.37 million recorded in January as LTC surpassed both Bitcoin (BTC) and Ethereum (ETH), it is still roughly 10% higher than the average of 366,000 from 2023.
Historically, Litecoin has generally tended to perform well in terms of activity-related metrics, due to the fact that the network offers cheap and fast transactions. The traffic growth seen by LTC compared to the previous year means that users are still drawn to the chain to use it as a means of payment.
Recently, miners have also invested in the network, as the total LTC hash rate, a measure of miners’ computational power, has risen. Below is a chart of CoinWarz Which displays this trend.
The value of the metric appears to have been growing over the last few weeks | Source: CoinWarz
Growth in daily active addresses is usually constructive for any cryptocurrency, as it means there is increased interest in the network, which can help boost price movements. LTC hasn’t been doing the best in terms of price action lately, but strong traffic and miner confidence may help it turn around.
Litecoin price
Litecoin fell towards the $86 mark last weekend, but the coin appears to have seen a jump since then as its price is now trading near $110.
The price of the coin seems to have plunged since its high earlier in the month | Source: LTCUSDT on TradingView
Featured Image by Dall-E, CoinWarz.com, IntoTheBlock.com, Chart by TradingView.com