Market intelligence platform IntoTheBlock has explained why Litecoin (LTC) is not an asset to be overlooked based on its on-chain metrics.
Litecoin has witnessed significant activity lately
In a new one after at Below is the infographic shared by the analytics company.
According to the data, there are currently approximately 370,000 daily active addresses on the Litecoin blockchain. An address is said to be ‘active’ if it participates in some transactional activity on the network, either as a receiver or as a sender.
The value of the metric basically tells us about the number of users using the cryptocurrency. Another indicator, the daily transactions, provides information about the exact level of activity in which these users participate.
Currently, LTC users perform 200,000 transactions daily. IntoTheBlock has pointed out that this level of user activity is higher than on other networks such as Dogecoin (DOGE) and Cardano (ADA).
“Much of this activity stems from the fact that Litecoin is one of the few cryptocurrencies actively used for payments,” the analytics firm notes. LTC offers cheap and fast transactions, so it has always been a preferred network as a payment method. The activity-related metrics remain high (in fact, they’ve grown further over the past month), implying that this chain’s selling point is still attracting users.
Another metric in the infographic related to activity is transaction volume, which tracks the daily total amount of USD value transferred to the network. Impressively, this indicator currently stands at $10.27 billion, which is higher than the total market capitalization of the coin.
While Litecoin continues to do well in terms of activity-related metrics, the cryptocurrency has remained stagnant in terms of price growth. As a result, only 72% of addresses on the network make an unrealized profit.
Of course, this still means that the majority are above water, but other networks such as Bitcoin (BTC) are currently close to 100% due to the bull run. That said, another way of looking at this might be that Litecoin has relatively more headroom, as the risk of a massive sell-off increases as more investors take profits.
It seems a large majority of the Litecoin user base feels the same way, as 78% of the 7.94 million Litecoin holders have been HODLing for over a year.
“As one of the older Layer 1 networks still sees significant usage, Litecoin should not be overlooked,” says IntoTheBlock. However, it remains to be seen whether LTC can finally translate its positive on-chain numbers into price appreciation or not.
LTC price
Litecoin has suffered a decline of around 8% over the past 24 hours, pushing its price to $113.
