• Litecoin’s on-chain transaction activity has increased, indicating big players are investing in the coin.
• The coin’s third halving event is two months away and is causing excitement among investors.
• The hash rate of LTC has also seen an increase over the past few weeks which indicates the computational power of miners.
Litecoin Activity Increases Ahead of Halving
Litecoin (LTC) is getting closer to its third halving event, and on-chain transaction activity has been increasing as a result, signaling that major investors are jumping in. This increased network traffic has corresponded to an uptick in the coin’s hash rate over the past few weeks, reaching a near all-time high. Additionally, data from Age Consumed suggests that most holders are continuing to hold onto their tokens despite recent price drops, demonstrating their confidence in the long-term potential of Litecoin.
Increased Network Traffic
Crypto analyst Ali Martinez recently noted that there were more than 832,000 active wallets interacting with each other on the chain as senders or receivers – a milestone not previously seen since Litecoin’s launch 12 years ago. The growing interest in Litecoin can be attributed to both Bitcoin’s rising transaction fees and the introduction of LTC-20 token standard – a fork from BRC-20 standard used for Bitcoin Ordinals NFTs.
Rising Hash Rate
The increased network traffic have also led to an increase in LTC’s hash rate over the past few weeks according to Coinwarz data. On May 18th 2021, it hit 778.5 TH/s just below its all time high of 785 TH/s – indicative of the computational power miners have over securing the network.
Age Consumed Metric
The Age Consumed metric tracks movement of previously idle tokens and found that most holders were continuing to hold their tokens rather than sell them off despite recent price drops – further confirming investor confidence in Litecoin’s long term potential growth.
Overall it seems like investors are feeling optimistic about Litecoin ahead of its upcoming halving event due to evidence showing increasing network traffic and rising hash rates along with strong investor HODLing behavior which hints at faith being put into this cryptocurrency for future gains.