Litecoin (LTC), the popular Bitcoin hard fork and one of the oldest altcoin projects, has recorded some interesting network activity lately. According to data from on-chain analytics platform Santiment, the number of daily active network addresses in Litecoin has increased by over 400,000 since the beginning of May. However, Litecoin experienced only a slight increase in trading volume over the same period. This is also unusual given the significant increase in daily active addresses. Analyzing this network activity, Santiment published a detailed report on the factors behind this development. Here are the details…
LTC-20 standard marks rise for address count
According to Santiment, the majority of newly active addresses in Litecoin are made up of the smallest wallets in the network holding between 0-0.001 LTC. This explains the small increase in transaction volume despite the increase in the number of addresses per day. Santiment assumes that the recent launch of the LTC-20 token standard is the primary driver behind this rise in “microwallets”. This is based on chart data showing that this exciting rise in 0-0.001 LTC wallets started after the launch of the LTC-20 standard on May 2. According to the official Gitbook page, LTC-20 is referred to as an experimental standard for non-fungible tokens (NFTs). The Gitbook page includes the following statements for the LTC-20:
…This is a highly dynamic experiment and I strongly do not recommend making any financial decisions based on its design. However, I encourage the Litecoin community to stick with standard designs and optimizations until there is general consensus on best practices.
However, while the LTC-20 is in the testing phase, it has received praise from the Litecoin community over the past two weeks. This is mainly because it is based on the Bitcoin BRC-20 standard and allows users to create “worthless” NFTs using sequence theory. As we reported on cryptokoin.com, the BRC-20 token standard has proven quite successful since its launch two months ago and has since accumulated over $660 million in market capitalization. However, both BRC-20 and LTC-20 tokens are NFT-like assets that write data such as text, images and video on a Blockchain.
LTC-20 has yet to affect altcoin price
While the LTC-20 has seen an increase in the number of daily active addresses as well as the number of transactions on the Litecoin network, it has yet to reveal a similar positive impact on the LTC price. Litecoin has fallen by 9 percent and 11 percent in the last seven and 14 days, respectively, according to data from Coinecko. The token has gained 14.8% since the beginning of the year. However, it fell 80.43% from its all-time high of $410.26.
At the time of this writing, LTC is trading at $80.51, up 1.8 percent in the last 24 hours. The daily trading volume of the token also increased by 7.11 percent, reaching a value of $417.43 million. However, Litecoin remains the 14th largest cryptocurrency in the world with a total market cap of $5.88 billion.
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