Litecoin outpaces Bitcoin once again, here’s how

Journalist

Posted: November 16, 2023

• Litecoin’s transaction activity over the past two days was higher than that of Bitcoin.
• The average fee paid per transaction stayed in check.

Litecoin [LTC] became one of the most active blockchains in the industry over the past two days. For the first time in history, the proof-of-work (PoW) network clocked more than a million transactions on the 14th of November, AMBCrypto discovered.

In fact, the 14 count bettered the previous all-time high (ATH) of 660,153 recorded a day earlier. To put this in a broader context, LTC’s transaction activity over the past two days was higher than that of the original PoW network, Bitcoin [BTC].

It was worth noting that the latest bout of network traffic surpassed the May 2023 frenzy fueled by Ordinals and BRC-20 tokens.

Source: Glassnode

Transaction fees stay in control

However, despite the uptick in transaction count, the total number of coins transferred on-chain stayed low. This meant that most of the traffic was driven by low-value transactions.

Moreover, as the network got crowded, the total amount of fees paid to miners spiked. Having said that, the average fee paid per transaction by a network user dropped.

This implied that despite the exponential growth in transactions, the network wasn’t congested. In the past, network congestion has resulted in users bidding up the fees to jump the transaction queue.

Source: Glassnode

The state of LTC

The steep increase in on-chain transactions came amidst LTC’s rather subdued performance on the price charts. Though “Digital Silver” gained from the broader bullish sentiment and grew 16% in the last month, it was less than some other main assets.

The derivatives market was a mixed bag. The Open Interest (OI) in Litecoin Futures on Binance moved sideways, implying less willingness by traders to bet on future movements of the coin.

Source: Santiment

On the other hand, the Funding Rate on the exchange was positive, indicating the dominance of long-position traders.

How much are 1,10,100 LTCs worth today?

At the time of writing, LTC exchanged hands at $71.54, down marginally in the last 24 hours, as per CoinMarketCap.

The market emotion, however, was one of greed, as per AMBCrypto’s examination of Hyblock Capital’s data. It is generally assumed that greed boosts an asset’s value in the near term.

Source: Hyblock Capital