On-chain data shows that Litecoin transaction volume has more than doubled in the past year, a potentially positive sign for the network.
Litecoin transaction volume has shown steady growth recently.
In new mail Speaking on X, Jay Mella, director of the Litecoin Foundation, discussed the growth in on-chain activity that Litecoin has seen. The relevant metric here is “transaction volume,” which tracks the total amount of cryptocurrency that has become involved in transactions.
When this metric is rising, it means that users are moving between more tokens on the network. This trend indicates a growing interest in using blockchain technology.
On the other hand, a declining indicator indicates that activity on the network is slowing down, a possible sign that investors are paying less attention to cryptocurrencies.
Now, here is a chart showing the trend in Litecoin transaction volume over the history of the asset:
The value of the metric appears to have been on the way up in recent months | Source: @MillaLiraj on X
As shown in the chart above, Litecoin’s transaction volume was around 196.55 million LTC over a year ago, but today, the index value has grown to 412.37 million LTC.
It’s clear that the network has seen a huge jump in activity during this period, meaning that investor interest in making moves on the network has increased significantly. LTC has historically performed well on activity metrics like this, due to the fact that the blockchain offers cheap and fast transactions.
Cryptocurrency payment processing company BitPay recently announced the results of its 2024 Crypto Champions, and Litecoin performed well there as well. In particular, LTC performed remarkably well in the “Most Total Transactions” category, beating out coins like Bitcoin (BTC) and Ethereum (ETH) to take the top spot.
The top three in the BitPay 2024 Crypto Champions | Source: BitPay
The cryptocurrency also came in second in both the “Most Purchased” and “Most Purchased Gift Cards” categories, losing out to Bitcoin for first place in both.
While Litecoin has been doing well in terms of activity, it has yet to translate that growth into its price. In fact, during the period in which its transaction volume doubled, the value of the coin has dropped by more than 6%.
Thus, it appears that LTC is primarily used by those looking for a way to transact and not those using it for speculation, as is the case with many other cryptocurrencies.
LTC price
Litecoin has seen a drop of over 5% in the past 24 hours, taking its price to $62. The chart below shows what the coin’s trajectory has looked like recently.
Looks like the price of the coin has incurred a sharp drop in the past day | Source: LTCUSD on TradingView
Featured image by Dall-E, IntoTheBlock.com, chart by TradingView.com