The price of Litecoin (LTC) has had a disappointing performance in the second quarter of 2024, despite making a positive start to the year. The cryptocurrency has been facing significant bearish pressure in the past day, with its price falling by nearly 5% in a single move.
Despite LTC’s apparent struggles in terms of price action, its network has witnessed remarkable growth in recent weeks.
LTC Addresses Spike By 75% In A Single Day
According to data from the on-chain analytics firm IntoTheBlock, activity on the Litecoin blockchain has been on the rise lately. On Thursday, June 8th, the number of active addresses on the network surged by over 75% to claim above 600,000.
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IntoTheBlock revealed – via a post on the X platform – that this latest spike in addresses pushed the Litecoin network to a new high since January. This suggests increased interest in the LTC blockchain despite its coin’s price struggles.
When the number of addresses with a balance increases, it implies the entry of fresh investors or the return of old owners to a blockchain (Litecoin, in this case). It is often a strong indication of net adoption or rising faith in a particular network.
Interestingly, the crypto intelligence firm highlighted that this recent growth spurt has propelled Litecoin ahead of the smart contract platform Ethereum in terms of active addresses. The network is well ahead of Ethereum by at least 100,000 addresses, according to IntoTheBlock.
The number of active addresses is not the only area in which Litecoin has seen growth in the past day. The volume of transactions also experienced a significant increase. According to IntoTheBlock’s data, the number of LTC transactions surpassed 426,000 on Thursday.
The on-chain analytics platform noted:
While most of the increase is due to transactions smaller than $10, there is a noticeable rise in transactions of all sizes.
Impact On Litecoin Price
Strong fundamentals and network growth have been known to drive the price of crypto assets in many scenarios. In simple terms, an increase in network activity and users often translates to an increase in the network’s valuation.
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However, the impact of network fundamentals on asset prices is never straightforward. In Litecoin’s case, there has been no significant positive development in its price since the latest on-chain revelation.
As of this writing, the price of LTC stands around $80.28, reflecting a 4.5% decline in the past day.
Featured image from Getty, chart from TradingView
Source: NewsBTC.com
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