According to Litecoin.com, the recent onchain metrics for LTC indicate that a “potential floor of support and intrinsic user interest” in the proof-of-work-based cryptocurrency has been established.
Litecoin network sees increases across key data sets
The team at Litecoin.com, an online resource for the latest information for ongoing development of Litecoin, argued that several onchain metrics for the leading cryptocurrency “began flatlining” earlier this year.
Data from BitInfoCharts now suggests that “interest has once more started growing across the board” for Litecoin. Yet, the network interest for LTC does not seem to coincide with the crypo-asset’s current market price, Litecoin.com’s team noted.
As mentioned in Litecoin.com’s latest blog post, the LTC network has experienced “increases across a number of key data sets.” Notably, more than $1.6 billion in value was transferred on the Scrypt mining protocol-based network during a 24-hour period on May 16, Litecoin.com’s team revealed.
Average transaction size increases from $7,000 to $20,000
However, Litecoin.com’s blog pointed out that the current figures are still quite low when compared to the average $2 billion transacted daily on the LTC network during late 2017 and early 2018 when crypto-asset prices reached their all-time highs.
Although LTC network activity has not reached levels comparable to those seen during the historic crypto market bull run of 2017, the team at Litecoin.com noted that the average transaction value increased significantly on the peer-to-peer digital asset platform.
Average transfers on the Litecoin blockchain increased from approximately $7,000 to $20,000, Litecoin.com revealed.
“Such sizeable transactions indicate the network is still primarily being used by affluent individuals to avoid traditional monetary transfer fees or as a speculative asset in which to invest. Not that this is necessarily bad, however, it runs contrary to the idea of these networks being used by [regular people] for smaller daily payments,” said the Litecoin.com team.
LTC active addresses peak at over 80,000
Litecoin.com’s blog further noted that active LTC addresses also experienced a significant increase, recently peaking at over 80,000 active addresses. However, this doesn’t necessarily mean there are more network participants, the team noted. The figure could be misleading because a single user (or small group of users) could potentially create a large number of LTC addresses, which is a common practice among centralized crypto exchanges, the Litecoin.com team explained.
In addition to a rise in active addresses, the number of daily LTC transactions increased from 20,000 to 27,000, Litecoin.com’s blog revealed. Although these figures are still well below the level of activity the LTC network experienced in late 2017, the latest surge in Litecoin network transactions could be an “early sign” that more users are taking interest in the $7 billion cryptocurrency platform.
Litecoin, currently ranked #5 by market cap, is up 4.88% over the past 24 hours. LTC has a market cap of $7.14B with a 24 hour volume of $6.42B.