After the introduction of LTC20 standard for non-fungible tokens (NFTs), smaller Litecoin addresses have been contributing significantly to network activity.
While many cryptocurrencies have been experiencing selling pressure, the price of Litecoin (LTC) has increased by over 7.59% in the past 24 hours. It is currently being traded at $87.05 and has a market capitalization of $6.3 billion.
Litecoin has been part of the overall market rally in the cryptocurrency space this year. It reached and surpassed the $100 mark twice in February and April. However, it faced a significant decline and dropped below $80. Now, Litecoin (LTC) is once again showing a positive trend and moving upward.
According to market analysts, the recent increase in the price of LTC is attributed to two factors. Firstly, the upcoming Litecoin halving, which is set to take place in August 2023, is generating anticipation and interest among investors. Additionally, there is another factor contributing to the recent rally in Litecoin’s price, although it is not explicitly mentioned.
LTC Active Addresses Surge with LTC20 Introduction:
According to on-chain data provider Santiment, while transaction volumes on the Litecoin network have been increasing steadily, there has been a significant surge in the total number of active addresses. Active addresses refer to the addresses that are actively involved in transactions on the blockchain.
The large number of active addresses and low transaction volumes indicate that the transactions being made are relatively small in size. This could be due to the recent introduction of the LTC20 standard, which may have encouraged more frequent but smaller transactions on the Litecoin network.
Just like Bitcoin, Litecoin has been closely following its footsteps since its inception. Following Bitcoin’s introduction of the BRC-20 protocol, Litecoin also introduced its own LTC20 standard for non-fungible tokens (NFTs), which created significant excitement in the market. According to a report from data provider Santiment, this development has garnered attention and interest.
By analyzing the distribution of LTC supply, it becomes apparent that the number of wallets with the smallest amount of LTC, ranging from 0 to 0.001 LTC, is growing rapidly along with the increase in active addresses. This correlation indicates that LTC20, the NFT standard introduced by Litecoin, might be the key factor behind the unusual surge in active addresses on the Litecoin network.
Courtesy: Santiment
It will be fascinating to observe if the excitement around Litecoin can continue and if the price of LTC can confidently surpass $100 with significant trading activity this time. Charlie Lee, the creator of Litecoin, is anticipating a substantial price rally for LTC after the halving event later this year.
In the past, the price of LTC encountered resistance around the $103 level, resulting in a decline. However, if there is a breakthrough above this level, it could signal the start of the next upward surge for Litecoin.
