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Cryptocurrency News Articles
Litecoin (LTC) Records Highest Weekly Transaction Volume Since May 2023, Here's What This Could Mean for the Asset's Price
Oct 24, 2024 at 06:00 pm
On-chain data shows Litecoin has recently recorded its highest weekly volume since May 2023. Here's what this could mean for the asset's price.
Litecoin (CRYPTO: LTC) has seen its highest weekly on-chain transaction volume since May 2023, which could have an impact on the asset's price.
Litecoin Transaction Volume Surges
According to a recent post by Jay Milla, director of marketing at the Litecoin Foundation, on X, the Litecoin (LTC) network has processed a massive amount of transaction volume during the past week. This "transaction volume" is an on-chain metric that tracks the total amount of Litecoin that gets involved in transactions on the network each day.
A high value for this metric indicates that users are moving large amounts of LTC on the blockchain, which could be a sign of high trading interest from investors. Conversely, a low value for the indicator suggests that holders aren't paying much attention to the cryptocurrency, as they aren't making too many transfers.
Here's a chart showing the trend in Litecoin transaction volume over the last few months:
The Litecoin transaction volume has seen a recent surge, indicating that users have been engaging in a high level of activity. During the past week alone, the network saw moves of 512.8 million LTC, which is almost $35.4 billion at the current exchange rate of the cryptocurrency. This means that, on average, the chain has been seeing a volume of over $5 billion each day.
Typically, a high amount of network activity is something that can lead to volatility for the asset's price, as all these simultaneous moves can provide the fuel that sharp moves require. Any such volatility that emerges out of this, however, can go in either direction. Litecoin has, in fact, declined during the last few days, so this recent high volume might have corresponded to selling activity.
What can be positive, however, is the fact that the metric has been on an uptrend for a while now, which might indicate that the activity isn't a reflection of some short-lived hype, but rather of organic growth.
Litecoin is known for its cheap and fast transactions, which is why the cryptocurrency has historically tended to perform well in metrics related to network activity. It seems like this aspect of it is still able to attract user interest.
As for how LTC fits into the broader market, market intelligence platform IntoTheBlock shared a chart comparing the transaction volumes of the major coins in the sector:
Stablecoins USDT and USDC have been leading the market recently with volumes of $29 billion and $28 billion, respectively. Bitcoin follows these assets in third with the metric standing at $17 billion for it.
Thus, while Litecoin has been growing recently, its volume is still less than a third of the original cryptocurrency's.
LTC Price
Litecoin's price has declined by 2.4% during the past week and currently trades at $69. At the time of writing, the seventh-ranked cryptocurrency has a total market cap of $51.2 billion.
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