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Market intelligence platform IntoTheBlock explained why Litecoin (LTC) is not an asset to overlook based on its on-chain metrics.
Litecoin has continued to see significant activity recently
In new mail On Below is the chart shared by the analytics company.
According to the data, there are currently about 370,000 daily active addresses on the Litecoin blockchain. An address is said to be “active” when it is involved in some type of transactional activity on the network, either as a receiver or a sender.
The metric value basically tells us how many users are using the cryptocurrency. Another indicator, daily transactions, provides information about the exact measure of activity in which these users engage.
At present, LTC users make 200,000 transactions daily. IntoTheBlock noted that this level of user activity is higher than on other networks such as Dogecoin (DOGE) and Cardano (ADA).
“Much of this activity stems from Litecoin being one of the few cryptocurrencies actively used for payments,” the analytics firm notes. LTC offers cheap and fast transactions, so it has always been a preferred network as a means of payment. The continued rise in metrics related to activity (in fact, increased growth over the past month) indicates that this selling point for the chain continues to attract users.
Another metric in the graph that correlates with activity is transaction volume, which tracks the total daily amount of USD value transferred into the network. Impressively, this indicator currently stands at $10.27 billion, which is higher than the total market cap of the coin.
While Litecoin continues to perform well in terms of activity-related metrics, the cryptocurrency has remained stagnant in terms of price growth. The result is that only 72% of the addresses on the network sit with some unrealized gain.
Of course, this still means the majority are above water, but other networks like Bitcoin (BTC) are approaching the 100% mark right now due to the rally. However, another way to look at this might be that Litecoin has more relative room to run, since the risk of a sell-off rises the more investors make profits.
The vast majority of the Litecoin user base also seems to think similarly, as 78% of the 7.94 million Litecoin holders have been holding Litecoin for more than a year.
“As one of the older layer-one networks that still sees significant usage, Litecoin should not be overlooked,” says IntoTheBlock. However, it remains to be seen whether or not LTC will finally be able to translate its positive on-chain metrics into price appreciation.
Litecoin price
Litecoin suffered a roughly 8% decline over the past 24 hours, taking its price to $113.
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