The introduction of Ordinals, a feature that enables the creation of NFTs on the Bitcoin network, had a positive influence on Litecoin.
The growing popularity of Bitcoin Ordinals in recent weeks resulted in increased activity within the rival cryptocurrency network, Litecoin.
On May 10, 2023, the LTC network recorded a total of 580,000 transactions, as reported by Bitinfocharts, a platform that tracks blockchain data.
When looking at historical data, it is evident that the average number of transfers on the LTC network was around 100,000. However, in April, there was a significant increase in the number of transfers, reaching a historical peak with a nearly 500% increase. Although the current number has decreased to 360,000, it still represents a substantial rise compared to previous levels.
What is causing the significant increase in network activity?
Analysts who study on-chain data attribute the surge in activity on the Litecoin network to the integration of Bitcoin Ordinals. Investors who utilize Ordinals, a platform that allows the creation of NFTs on the Bitcoin network, are now using Litecoin directly. This integration took place in February.
According to the Litecoin Foundation, they have provided information to the crypto press stating that over 2.6 million NFTs have been created using Litecoin. In an email sent by the developers, they made the following statement about the situation:
“The Litecoin network can handle the increased demand, and the fees for transferring on our blockchain have remained steady even with the high demand”.
The increased interest in Ordinals has had a positive impact on the price of LTC. According to CoinMarketCap, Litecoin has gained 9% since the beginning of the week.
Before the halving event in August, there are expectations for a potential rally in Litecoin that has not happened yet. If Litecoin can maintain a price above the important threshold of $100, it could potentially trigger a rally up to $135.
This information is for general knowledge only and should not be considered as advice for investing or making financial decisions