Litecoin Network Sees Explosive Growth in On-Chain Activity, But Why Is LTC Price Lagging? Read CoinChapter.com on Google News
NAIROBI (CoinChapter.com)— The Litecoin network has experienced a substantial increase in on-chain activity, with transaction volumes more than doubling over the past year.
Data shows that the volume rose from 196.55 million LTC in Aug. 2023 to 412.37 million LTC this month, indicating growing engagement as more users participate and transact on the platform.
Litecoin’s on-chain volume doubles from 196 million to 412 million LTC. Source: X
Jay Milla, Director at the Litecoin Foundation, highlighted this trend on X, noting that the uptick in transaction volume reflects heightened activity.
On-Chain Volume Reaches $26.5 Billion in a Week
In the past week alone, Litecoin’s on-chain volume soared to $26.5 billion, transferring more than five times the asset’s current market capitalization. The network moved over 412 million LTC during this period, showcasing a consistent increase in network activity.
Milla emphasized this growth, stating that Litecoin has steadily grown in on-chain volume, further solidifying its utility in the crypto market.
Litecoin price and open interest chart. Source: Coinglass
Additionally, Litecoin derivatives data show an increase in trading volume by 16.14%, reaching $329.01 million, while open interest slightly decreased by 0.57%, now standing at $226.08 million.
Litecoin announces 62 million transactions in 2024 within 7 months. Source: Litecoin/X
Moreover, Litecoin’s network processed 62 million transactions in the first seven months of 2024 alone, nearly matching the 67 million transactions processed in 2023. This acceleration in network activity highlights the growing utility of Litecoin despite its market performance.
Litecoin Network Activity Soars, Price Lags Behind
The ongoing rise in Litecoin’s transaction volume has not yet translated into price appreciation. Today, Litecoin is trading at approximately $63.34, down 1.47% in the last 24 hours, with a daily trading volume of $318.21 million.
LTC/USD 4-hour price chart. Source: Daan crypto
Daan Crypto Trades noted this unusual V-shaped pattern, which is rare in the crypto market. Although Litecoin saw a rapid recovery, it has struggled to maintain this momentum, leading to the current corrective phase.
Despite the surge in on-chain activity, Litecoin’s price has underperformed, down 14% over the past month and 14.5% year-over-year. According to CoinMarketCap data, the coin is also down 1% over the last week, showing a consistent trend of underperformance relative to its network activity.
LTC/USD 1-day price chart for Aug. Source: CoinMarketCap
Despite the price dip, Litecoin remains a popular choice for daily transactions, particularly due to its low fees, which average just $0.005 in 2024.
The post Litecoin Network Sees Explosive Growth in On-Chain Activity, But Why Is LTC Price Lagging? appeared first on CoinChapter.
