The Litecoin ecosystem has witnessed a notable milestone, as the cryptocurrency’s active addresses have reached a new all-time high, just four months after its third halving event. This report details the recent surge in Litecoin network activity, exploring the reasons behind this phenomenon and examining how the market and transactions are affected.
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Litecoin records a boom in active addresses
The Litecoin landscape has seen a resurgence, with the number of active addresses surpassing a staggering 1.4 million on December 8, 2023, according to data from blockchain analytics platform IntoTheBlock. This phenomenon comes shortly after active addresses reached a six-month high, marking a significant milestone in the evolution of the popular cryptocurrency.
Growth Drivers: LTC-20 and Litecoin Ordinals Protocols
A key piece in this exponential increase in active addresses is the LTC-20 token standard, based on Litecoin’s Ordinals protocols. This implementation, derived from Bitcoin’s BRC-20 standard, is presented as a successful experiment demonstrating the ability of users to create off-chain balance statements with inscriptions. The launch of this standard has made it possible to create fungible tokens on the Litecoin network, thus driving the growth of active addresses.
The boom in wallets with balance and new highs in transactions
In addition to the increase in active addresses, Litecoin wallets with balance have reached unprecedented levels, registering a 40% increase so far this year. This parallel growth is supported by the all-time record of transactions on the network, which reached a staggering 1.09 million on November 14. This achievement not only exceeds Bitcoin transactions in that period, but also reflects continued and sustained growth in activity on the Litecoin network.
Litecoin vs. Bitcoin: Defying Post-Halving Expectations
Although halving events have historically driven cryptocurrency prices higher, Litecoin has defied these expectations. Following its third halving in August, which reduced block rewards from 12.5 LTC to 6.25 LTC, Litecoin recently experienced its first significant rise. This phenomenon is particularly notable, as it contravenes the downward trend that followed the last halving.
Market Outlook and LTC Value
The Litecoin market has responded positively to this increase in network activity. LTC joined several altcoins in a rally over the weekend, reaching $77 on December 10. Although it has seen a 7% correction, standing at $72.45, this recent rise is an indicator of the growing confidence and adoption of Litecoin in the cryptocurrency market.