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On-chain data shows the Litecoin transaction volume has more than doubled in the last year, a sign that could be positive for the network.
Litecoin Transaction Volume Has Shown Steady Growth Recently
In a new post on X, Jay Milla, director at Litecoin Foundation, has discussed about the growth in on-chain activity that LTC has witnessed. The indicator of relevance here is the “transaction volume,” which keeps track of the total amount of the cryptocurrency that’s becoming involved in transfers.
When the value of this metric increases, it means the users are shifting around a larger number of tokens on the network. Such a trend implies interest in using the blockchain is going up.
On the other hand, the declining indicator suggests that activity on the network is cooling off, a potential sign that investors are paying less attention to cryptocurrency.
Now, here is a chart that shows the trend in the 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 displayed in the above graph, the Litecoin transaction volume was around 196.55 million LTC over a year ago, but today, the indicator’s value has grown to 412.37 million LTC.
Clearly, the network has seen quite a jump in activity during this period, meaning that investor interest in making moves on the network has shot up. LTC has historically performed well in activity-related metrics like this, because of the fact that the blockchain offers cheap and fast transactions.
Cryptocurrency payments processor BitPay recently announced results of its 2024 Crypto Champions and Litecoin did fine there as well. In particular, LTC did notably well in the “most overall transactions” category, beating the likes of Bitcoin (BTC) and Ethereum (ETH) to first place.
The top three in the BitPay 2024 Crypto Champions | Source: BitPay
The cryptocurrency also came second in the “most frequently bought” and “most gift cards bought” categories, losing out to Bitcoin for the first position in both of them.
While Litecoin has been doing well in terms of activity, the asset has still not been able to translate this growth into its price. In fact, in the period when its transaction volume doubled, the coin’s value went down by over 6%.
Thus, LTC appears to be primarily used by those looking for a mode of transactions and not those who are in it to speculate, as is the case with many other cryptocurrencies.
LTC Price
Litecoin has observed a plunge of more than 5% over the last 24 hours, which has taken its price to the $62 level. The below chart shows how the coin’s recent trajectory has looked like.
Looks like the price of the coin has incurred a sharp drop in the past day | Source: LTCUSD on TradingView
Featured image from Dall-E, IntoTheBlock.com, chart from TradingView.com
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