Litecoin has seen a significant increase in its network activity recently, clearly reflecting its high popularity and usage. Meanwhile, LTC price action also turned bullish as it recorded double-digit growth. Let's take a closer look at the Litecoin ecosystem.
A glimpse of Litecoin network activity
IntoTheBlock recently shared a tweet revealing an interesting development regarding the Litecoin ecosystem. Accordingly, the Litecoin network is processing $2.85 billion in transactions of over $100k per day, accounting for more than 50% of LTC's market capitalization
This is higher than most Layer 1s. For example, Dogecoin only processed $590 million in large transactions, despite having a market capitalization about three times that of Litecoin.
All of these developments suggest that whale activity on the Litecoin network is at a significantly high level.
Glassnode data shows that Litecoin active addresses spiked on July 9 and reached 478,000. As a result, blockchain's daily transactions also increased during the same period.
Everything from a value perspective has shown optimism towards blockchain, evident through the increase in transaction fees.
Source: Glassnode
Litecoin bulls are back
While blockchain network activity increased, reflecting greater usage and adoption, LTC's price action also turned bullish. In fact, the altcoin's price has increased more than 8% in the past seven days and inched up 1% on the day.
At the time of writing, Litecoin is trading at $70 with a market capitalization of over $5.26 billion, making it the 23rd largest cryptocurrency.
Source: TradingView
Santiment data shows that LTC's MVRV ratio increased sharply last week, which is a bullish signal.
Additionally, the number of large transactions also increased, reflecting high whale activity. However, what is surprising is that despite the recent price increase, the market sentiment around the coin remains pessimistic. This is evidenced by the decline in its weighted sentiment.
Source: Santiment
Additionally, LTC's fear and greed index is at 55% at press time, meaning the market is in a “neutral” phase.
Source: cfgi.io
If the rally lasts, LTC could soon touch $71.80. However, if the trend changes, as some metrics suggest, investors could see LTC drop to $68.
Source: Hyblock Capital
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