Litecoin (LTC) Records Spike In Active Addresses Following Launch of LTC-20: Santiment
May 13 2023 - 7:20AM
NEWSBTC
Popular Bitcoin hard fork and one of the earliest cryptocurrencies,
Litecoin (LTC), have recorded some interesting network activity in
recent times. According to data from the on-chain analytics
platform, Santiment, the number of daily active network addresses
on Litecoin has increased by over 400,000 since the start of
May. However, Litecoin has only experienced a slight increase
in its transaction volume during the same period, which is unusual
considering the significant rise in its daily active addresses.
Analyzing this network activity, Santiment released a detailed
report on the factors behind such development. Increased Daily
Active Addresses On Litecoin | Source: Santiment Related Reading:
PEPE Attempts Market Rebound, Surges By 28% In 24 Hours LTC-20
Standard Drives Rise In Litecoin Micro Addresses
According to Santiment, the majority of new active addresses on
Litecoin are the most miniature set of wallets on the network
holding between 0-0.001 LTC. This explains the little increase in
trading volume despite the rising number of daily addresses.
Behind this gain in micro wallets, Santiment postulates the recent
introduction of the LTC-20 token standard to be the primary driving
force. This is based on chart data which shows that this exciting
rise in the 0-0.001 LTC wallets began after the launch of the
LTC-20 standard on May 2. Increased Micro Addresses (0-0.001
LTC) On Litecoin | Source: Santiment According to its official
Gitbook page, LTC-20 is referred to as an experimental standard for
non-fungible tokens (NFTs). While providing an introduction
to this blockchain product, the page author stated; “…this is
an extremely dynamic experiment, and I strongly discourage any
financial decisions to be made on the basis of its design. I do,
however, encourage the Litecoin community to tinker with standard
designs and optimizations until a general consensus on best
practices is met.” However, while LTC-20 is in its
testing phase, it has been the rave of the Litecoin community in
the last two weeks. This is mainly because it is based on the
Bitcoin BRC-20 standard, allowing users to create “worthless”
fungible tokens using the ordinal theory. The BRC-20 token
standard has proven to be quite successful since its launch two
months ago, accumulating a market cap of over $660 million from
then to date. That said, both the BRC-20 and LTC-20 tokens are
NFT-like assets, albeit fungible, which inscribe data such as text,
images and video on a blockchain. Related Reading: Lido (LDO)
Surges 16% In Single Day, Maintains Dominance In Liquid Staking
Market LTC-20 Yet To Affect LTC’s Price Although LTC-20 has brought
about an increase in the daily active address as well as
transaction counts on the Litecoin network, it is yet to elicit a
similar positive effect on the price of LTC. Based on data from
Coingecko, Litecoin has declined by 8.4% and 10.7% in the last
seven and 14 days, respectively. The token has gained by 14.8% on
its year-to-date value but is down by a staggering 80.43% from its
all-time high value of $410.26. At the time of writing, LTC is
trading at $80.51, having gone up by 1.8% in the last 24 hours. The
token’s daily trading volume has also gained by 7.11% to attain a
value of $417.43 million. That said, Litecoin remains the 14th
biggest cryptocurrency in the world, with a total market cap of
$5.88 billion. LTC Trading At $80.70 | Source: LTCUSD Chart
on Tradingview.com -Featured Image: JDN , Chart from TradingView.
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