Litecoin (LTC) price has had a disappointing performance in the second quarter of 2024, despite having a positive start to the year. The cryptocurrency has faced significant bearish pressure over the past day, with its price dropping nearly 5% in a single move.
Despite LTC's apparent difficulties in terms of price action, its network has witnessed notable growth in recent weeks.
LTC addresses increase 75% in a single day
According to data from on-chain analytics firm IntoTheBlock, activity on the Litecoin blockchain has been increasing lately. On Thursday, June 8, the number of active addresses on the network increased by more than 75% to reach more than 600,000.
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IntoTheBlock revealed – via a x.com/intotheblock/status/1799006336451244319″ target=”_blank” rel=”nofollow”>post on the platform: that this latest surge in addresses took the Litecoin network to a new high since January. This suggests increased interest in the LTC blockchain despite its currency price struggles.
When the number of addresses with a balance increases, it implies the entry of new investors or the return of old owners to a blockchain (Litecoin, in this case). It is often a strong indication of network adoption or growing faith in a particular network.
Interestingly, the crypto intelligence firm highlighted that this recent accelerated growth has propelled Litecoin ahead of smart contract platform ethereum in terms of active addresses. The network is far ahead of ethereum by at least 100,000 addresses, according to IntoTheBlock.
The number of active addresses is not the only area where Litecoin has seen growth in the last day. Transaction volume also saw a significant increase. According to data from IntoTheBlock, the number of LTC transactions exceeded 426,000 on Thursday.
The on-chain analytics platform noted:
While most of the increase is due to transactions under $10, there is a notable increase in transactions of all sizes.
Impact on Litecoin price
Strong fundamentals and network growth are known to drive the price of crypto assets in many scenarios. In simple terms, an increase in network activity and users often translates into an increase in network valuation.
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However, the impact of network fundamentals on asset prices is never straightforward. In the case of Litecoin, there has been no significant positive development in its price since the last on-chain revelation.
At the time of writing, the price of LTC is around $80.28, reflecting a 4.5% drop over the past day.
Featured image from Getty, chart from TradingView
