On-chain data shows that Litecoin’s daily active addresses indicator has seen a significant increase this year compared to last.
Litecoin Average Active Addresses Have Been Noticeably Higher This Year
in a new mail On X, market intelligence platform IntoTheBlock has discussed the year-over-year growth in Litecoin daily active addresses. “Daily Active Addresses” refers to a metric that measures the total number of addresses that participate in some type of transactional activity on the network every day.
When the value of this indicator increases, it means that the unique number of addresses making transfers on the blockchain is increasing. Since the unique number of addresses can be equated to the unique number of users, this type of trend implies that traffic on the chain is increasing.
On the other hand, the metric recording a decline suggests that investor interest in the cryptocurrency may be declining as not many users are participating in on-chain activities.
Now, here is a chart showing the trend in Litecoin daily active addresses over the past year:
Looks like the value of the metric has been flat in recent months | Source: IntoTheBlock on X
As can be seen in the chart above, Litecoin daily active addresses started 2024 very strongly, but the metric cooled shortly after. There have been a few bursts of activity since then, but overall, the indicator has shown a steady sideways trajectory.
On average, there have been around 401,000 addresses interacting on the blockchain every day this year. While this is significantly lower than January’s huge high of 1.37 million, where LTC outperformed both Bitcoin (BTC) and Ethereum (ETH), it is still almost 10% higher than the 2023 average of 366,000.
Historically, Litecoin has generally tended to do well in terms of activity-related metrics, due to the fact that the network offers cheap and fast transactions. The growth in traffic that LTC has experienced compared to the previous year would imply that users are still attracted to the chain for its use as a means of payment.
Recently, miners have also been investing in the network, as the total LTC hashrate, a measure of miners’ computing power, has been increasing. Below is a graph of CoinWarz showing this trend.
The value of the metric appears to have been growing over the last few weeks | Source: CoinWarz
Growth in daily active addresses is typically constructive for any cryptocurrency as it means there is growing interest in the network, which can potentially help drive price movements. LTC hasn’t exactly been performing the best in terms of price action lately, but strong traffic and miner confidence may help it turn the tide.
LTC Price
Litecoin had plummeted towards the $86 mark late last week, but it appears that the coin has seen a jump since then as its price is now trading around $110.
The price of the coin seems to have plunged since its high earlier in the month | Source: LTCUSDT on TradingView
Featured image by Dall-E, CoinWarz.com, IntoTheBlock.com, TradingView.com chart
