On-chain data shows that Litecoin just recorded its highest weekly volume since May 2023. Here’s what this could mean for the asset’s price.
Litecoin Transaction Volume has increased recently
In a new article on X, Jay Milla, director of marketing at the Litecoin Foundation, indicated that the LTC network has seen a large amount of transaction volume during the past week. “Transaction volume” here refers to an on-chain metric that tracks the total amount of Litecoin involved in network activity on a daily basis.
If the value of this metric is high, it means that users are moving in large amounts on the blockchain. Such a trend means that interest in trading in the property is high among investors.
On the other hand, the indicator that it is low means that the owners are probably not paying much attention to the cryptocurrency since they are not transferring much.
Now, here is a chart showing the trend of Litecoin transaction volume over the past few months.
The value of the metric appears to have been rising in recent weeks | Source: @MillaLiraj on X
As shown in the graph above, Litecoin transaction volume has seen growth recently, suggesting that users have been participating in an increasing amount of activity. During the last week alone, the network has seen movements of up to 512.8 million LTC, which is worth about 35.4 billion dollars at the current exchange rate of the cryptocurrency. This means that, on average, the chain was witnessing a volume of more than 5 billion dollars every day.
In general, a high amount of network activity is something that can lead to volatility in the stock price, as all these measures at the same time can provide the fuel needed for sharp movements. Any such volatility from this, however, could go either way. Litecoin has actually gone down over the past few days, so this recent high volume may have coincided with selling activity.
What can be positive, however, is the fact that the metric has been trending upward for some time now. This may suggest that the work is not an expression of a certain fashion, but rather a natural development.
Litecoin is known for its cheap and fast operations, so the cryptocurrency has historically tended to perform well in terms of metrics related to network activity. It would seem that this quality of its still manages to attract the interest of users.
As for how LTC fits into the bigger picture, market intelligence platform IntoTheBlock shared a chart comparing the transaction rates of the major coins in the sector.
Looks like stablecoins are on the top of the list | Source: IntoTheBlock on X
The stablecoins USDT and USDC have dominated the market recently with volumes reaching $29 billion and $28 billion, respectively. Bitcoin follows these assets in third place with its $17 billion metric.
So, while Litecoin has recently grown, its volume is still less than a third of the original cryptocurrency.
The highest amount of LTCs
At the time of writing, Litecoin is trading around $69, down more than 2% over the past week.
The price of the coin appears to have been heading down recently | Source: LTCUSDT on TradingView
Featured image from Dall-E, IntoTheBlock.com, chart from TradingView.com