Litecoin (LTC) recorded an impressive price increase in 2024, with a nearly 50% rise. However, the recent market volatility briefly pulled the price of this altcoin below the $87 threshold. Selling pressure then eased, and the LTC price has now recovered, trading steadily above $107.

The surge in network activity of Litecoin

The Litecoin network has seen a significant increase in activity. According to data from IntoTheBlock, the average number of daily active addresses reached 401,000 this year, up from 366,000 in 2023. In particular, at the beginning of January, network activity peaked at 1.37 million active addresses in just one day – far exceeding the daily transaction volume of both Bitcoin and Ethereum at the same time.

This growth momentum reflects the increasing utility of Litecoin as well as strong community engagement as the cryptocurrency market enters a growth phase.

Litecoin also reaffirms the confidence of long-term investors. The data shows that 53.9% of the total LTC supply that has ever been mined has been held for over a year without any transactions, indicating that a large portion of this supply remains off the market.

Additionally, 85.8% of the total LTC has been held for over a month, demonstrating the long-term holding trend among investors. The average holding time for each LTC reaches 2.4 years, indicating the commitment and long-term investment perspective of many holders.

Future prospects of Litecoin

Some cryptocurrency analysts are optimistic about Litecoin's potential, predicting that the coin could break its historical price peak and reach $500 in the current bull cycle.

Although Litecoin's growth rate seems slower compared to other cryptocurrency assets, analysts emphasize that the solid fundamentals and resilience through market cycles are key drivers fueling the value of this coin.

Some perspectives even compare the current market behavior of Litecoin with its trend during the 2017 bull run, suggesting that history may repeat itself. This coin is emitting positive signals as it breaks out of the accumulation phase, with technical indicators such as RSI and MACD both showing upward momentum.

These signals hint at the possibility that Litecoin will break out strongly, positioning it as a 'potential wildcard' in the next growth cycle of the crypto market.