Litecoin Network Activity Surges, Reaching 401,000 Daily Active Addresses
Litecoin has had an impressive rally this year, surging by almost 50%. The latest market crash, however, briefly dragged the altcoin below $87. The selling pressure has since subsided as Litecoin currently trades above $107.
Underpinning its price trajectory is the strong network growth.
Litecoin Network Engagement Soars
Litecoins network activity has witnessed a notable surge. In fact, data compiled by IntoTheBlock revealed that the average daily active addresses rose to 401,000 compared to 366,000 in 2023. Meanwhile, network activity peaked in early January, reaching an impressive 1.37 million active addresses in a single day surpassing the daily activity of both Bitcoin and Ethereum at the time.
This spike demonstrated the protocols growing utility and user engagement amidst a bull season in the crypto industry.
Litecoin has also exhibited long-term investor confidence, as evidenced by data revealing that 53.9% of all LTC ever mined has been held without moving for more than a year, indicating that a large portion of its supply remains off the market.
Furthermore, 85.8% of all LTC has been held for over a month which highlighted a preference for sustained ownership among investors. The average hold time per LTC stands at 2.4 years, suggesting that many holders are not only committed but also view it as a long-term investment.
Whats Next For Litecoin?
One crypto analyst predicted that Litecoin could break its previously established ATH and reach $500 in the ongoing bull market.
While acknowledging that its growth trajectory may appear slow compared to other crypto assets, he highlighted its strong fundamentals and historical resilience as key drivers for upward momentum
Another one drew comparisons between Litecoins current market behavior and its performance during the 2017 bull run and suggested that history could be on the brink of repeating itself. The cryptocurrency appears to be showing promising signs of breaking out from its ongoing consolidation phase, with both the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) indicators signaling bullish momentum.
These technical signals indicate that the crypto asset could be gearing up for a surge, positioning it as a potential dark horse in the next crypto rally.
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