Litecoin (LTC) price performed disappointingly in Q2 2024 despite a positive start to the year. The cryptocurrency has come under significant bearish pressure over the past day, with its price falling by almost 5% in one move.
Despite LTC’s apparent problems with pricing operations, its network has seen remarkable growth in recent weeks.
LTC solves the problem of growing 75% in one day
According to data from the analytical company IntoTheBlock, activity on the Litecoin blockchain has been increasing recently. On Thursday, June 8, the number of vigorous addresses in the network increased by over 75% and exceeded 600,000.
IntoTheBlock Revealed – Via write to X platform – that this latest address surge has pushed the Litecoin network to fresh heights since January. This suggests increased interest in the LTC blockchain despite its coin’s price struggles.
When the number of addresses with a balance increases, it means the entry of fresh investors or the return of ancient owners to the blockchain (in this case, Litecoin). This is often a clear sign of network adoption or growing faith in a particular network.
Interestingly, the crypto intelligence firm highlighted that this recent surge has seen Litecoin overtake the Ethereum astute contract platform in terms of vigorous addresses. According to IntoTheBlock, the network is well ahead of Ethereum by at least 100,000 addresses.
The number of vigorous addresses is not the only area where Litecoin has seen an enhance over the past day. The volume of transactions also increased significantly. According to IntoTheBlock data, the number of LTC transactions exceeded 426,000 on Thursday.
The on-chain analytics platform noted:
While most of the growth comes from transactions smaller than $10, there is a noticeable enhance in transactions of all sizes.
Impact on the price of Litecoin
It is known that in many scenarios, powerful fundamentals and network development influence the price of crypto assets. To put it simply, an enhance in network and user activity often translates into an enhance in network valuation.
However, the impact of network fundamentals on asset prices is never clear. In the case of Litecoin, there has been no significant positive price development since the last on-chain disclosure.
At the time of writing, LTC is trading around $80.28, reflecting a decline of 4.5% over the last day.
Featured image from Getty, chart from TradingView
