- The increased network traffic has led to an increase in the hash rate of the coin in recent weeks.
- LTC crashed below $90, leading to prolonged liquidations worth $1.65 million in the past 24 hours.
Litecoins [LTC] widely expected halving event is just over two months away, which will be the third after 2015 and 2019. Excitement around the event began to build and on-chain transaction activity has gradually increased, indicating that major players have begun to jump in on their LTC investments.
Is your wallet green? Check out the Litecoin Profit Calculator
Crypto analyst Ali Martinez took to Twitter to highlight a major milestone in the proof-of-work (PoW) network.
Martinez noted that more than 832,000 active wallets interacted on-chain as senders and receivers, a level not seen in Litecoin’s 12-year history, popularly known as the “silver to Bitcoin’s gold”. “.
#Litecoin recently saw the largest spike in active addresses, serving more than 832,000 $LTC addresses interacted in the network as senders or receivers. pic.twitter.com/jPJ8ilTBsz
— Ali (@ali_charts) May 23, 2023
‘Lite’ hits the roof
LTC has been on a tear since users get bogged down by rising Bitcoin transaction fees [BTC] network, opted to switch to cheaper alternatives.
The other driving force behind Litecoin’s increasing network traffic was the introduction of the LTC-20 token standard. This is a fork from the BRC-20 standard on which Bitcoin Ordinals NFTs are based.
The increased network traffic has also led to an increase in the hash rate of the coin in recent weeks.
According to Coinwarz, the hash rate reached 778.5 TH/s on May 18, just under the ATH of 785 TH/s. A growing hash rate is an indication of the computational power of miners to secure the network.
Source: Coinwarz
HODling is increasing
A look at the Age Consumed statistic, which tracks the movement of previously inactive tokens, revealed that most holders continued to hold on to their tokens, underscoring confidence in Litecoin’s long-term potential.
The spurt in addresses was primarily driven by retail investors creating miniature sets of wallets to trade LTC-20 tokens.
Portfolios holding between 0-0.01 LTC rose dramatically, reaching nearly 6 million at time of writing, data from Santiment revealed.
Source: Sentiment
How much are 1,10,100 LTCs worth today?
LTC drops below $90
At the time of writing, LTC traded hands at $88.09, a sharp drop of 5.5% in the 24-hour period, data from CoinMarketCap showed. The latest plunge reversed some of the previous week’s gains.
As a result of the crash, long positions worth $1.65 million were liquidated in the past 24 hours, data from Coinglass showed.
In addition, Open Interest (OI) in LTC futures fell nearly 6% to $402.85 million. More broadly, however, OI was up 16% month over month (MTO).
Source: Coinglass
