High Bitcoin Fees Drove Investors to Litecoin
By Shubham Joshi
Litecon (LTC), the second oldest virtual digital assets (VDAs) or commonly known as cryptocurrency, has stormed into the list of top 10 gainers this week.
Prices of Litecoin have been on a tear ever since users bogged down by rising transaction costs of Bitcoin (BTC), prefered less expensive alternative.
As per Glassnode, the active addresses and transaction count reached an all-time high on 10 May, coinciding with Bitcoin’s transaction jam.
The overall market sentiment for LTC turned bullish, as per blockchain analytics firm IntoTheBlock. The price rally boosted the earnings of investors as about 58% of the holders realized profit at the current market price.
Litecoin has rallied nearly 31% so far this year, but is still trading at discounted prices, according to an onchain metric called the market value to realized value (MVRV) Z-score.
Litecoin is a proof of work network where miners use high powered computer rigs to order transactions on blockchain.
Meanwhile, Ordinal mania has caused increased blockchain activity not just on Bitcoin’s network but also on Litecoin’s network.According to data from Bitinfocharts, Litecoin’s blockchain last week experienced over 584,838 transactions in one day, the highest transactions in history of Litecoin.
However, Litecoin,the digital token launched 12 years ago as a more transaction-friendly version of bitcoin is drawing the attention of speculators after a meme-token frenzy drove up costs on the largest blockchain.
In addition,to facilitate faster transactions, a new “block” of transactions is added every 2.5 minutes on the Litecoin chain, compared with every 10 minutes for bitcoin.
According to data from CoinMarketCap.com, Litecoin has a market value of about $6.7 billion, making it the 11th-largest cryptocurrency while Bitcoin’s market value is around $516 billion.
Speculators have also piled into Litecoin ahead of a blockchain event known as the halving, in which the rewards miners receive for securing transactions are reduced in order to cap the amount of tokens.Litecoin’s halving event is expected to take place in the month of July or early August,analysts believe.
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