Quick grip:
- Litecoin’s daily active addresses have seen slow growth since the beginning of the year.
- Daily active addresses are an indicator used to predict the price of a digital asset.
- An increase in Litecoin’s daily active addresses could indicate a resurgence of LTC in the cryptocurrency markets.
Litecoin is often referred to as Bitcoin’s little brother and sometimes BTC steals the show as seen with the current bull market environment. As a result, Litecoin’s on-chain business analysis is sometimes left to a few. In the case of Litecoin, the number of active daily addresses has been steadily increasing since the beginning of the year.
According to data from the Santiment team, 2020 started with LTC with around 60,000 active daily addresses. That number is now around 113,000. Furthermore, the Litecoin network recorded a maximum value of active addresses on June 5th and a value of 312,000. The screenshot below provides a better visual signal of the increase in activity on the Litecoin network.
Litecoin trades could indicate an LTC rally
In a previous analysis, it was found that the Bloomberg team had used the number of active BTC addresses to predict a value of $ 12,000. Sure enough, Bitcoin hit this milestone a few days ago.
Using a similar analysis but using LTC transactions, David Schwartz, project director at Litecoin Foundation, pointed out that the number of daily Litecoin transactions has reached the levels last seen in early December 2017. According to his analysis, Litecoin usage will continue to increase over time, and LTC’s price is expected to follow a similar upward path.
He explained his thesis via an 8-part Twitter thread which can be accessed via the following Tweet.
1 / #Litecoin it can handle up to 56 transactions per second
It currently averages 0.5 #LTC trx / ps (1 every 2 seconds) and steadily increasing over the past 4 months (March was 0.22)
The last time the average trx rate was this high was in early December ’17
Account … pic.twitter.com/Kx0ofnySwP
– David Schwartz (alias – Dasch) (@ DaddyCool1991) August 7, 2020
Key to his thesis are the following statements linking the use of Litecoin to the value of LTC.
#Litecoin it currently averages 0.5 trx / s at around $ 59 per coin. This means that average usage has doubled since the start of the last bull run and is gaining ground. So much so that the trx have exceeded the historical price, which means that the price does not show its true value.
The utilization rate of #Litecoin it will continue to rise during 2020 and beyond to a maximum of 2.61 trx / s and should carry the price with it over time. This shows that real adoption actually happened, even during the 2 year bear market and will continue to grow
[ad_2]Source link
