On-chain data shows the Litecoin network has achieved another major milestone recently as total LTC holders now exceed 8 million.
Litecoin Has Observed Significant Adoption Over The Past Year
As pointed out by Litecoin Foundation Director of Marketing Jay Milla in a post on X, the total number of LTC addresses with a balance has grown recently.
Below is a chart using data from the market intelligence platform IntoTheBlock that shows how the total number of LTC addresses carrying a non-zero balance has changed since the start of the year:
The value of the metric appears to have been trending up in recent weeks | Source: @MillaLiraj on X
From the graph, it’s visible that the total number of LTC holders has been going up this year, with the metric recently managing to surpass the 8 million mark, a new milestone for the blockchain.
Uptrends in the indicator can arise from a few different things. The first and most obvious one is fresh adoption; brand new users coming into the network would naturally open up new addresses and add coins to them, thus raising the total holder count.
Another factor that may contribute to a rise in the metric is existing users opening up new addresses for themselves to divide their holdings, perhaps for a purpose like privacy.
Investors who had left the cryptocurrency earlier, making a return to the network, would also register as a rise in the indicator. In general, all of these factors may be in play at the same time, but the important fact is that a net amount of adoption is usually occurring when the metric goes up.
For any cryptocurrency network, adoption is a constructive sign, as it means that the coin is able to attract fresh attention to it. It, however, usually doesn’t impact the asset in the short-term.
According to Jay, the total number of Litecoin addresses with a balance has increased by more than 1 million within the past year alone, which would imply that the asset’s adoption has accelerated in this period.
Historically, the main attraction of the LTC blockchain has been the fact that it offers fast transactions at a cheap rate. It would appear that this quality is still driving interest behind the asset, but unfortunately for its investors, the growth hasn’t quite reflected in its price, as LTC has lagged behind its peers.
One upcoming development that may be positive for Litecoin, though, is the fact that on the first date of the coming month, the cryptocurrency exchange Coinbase plans to launch a futures product for LTC.
LTC Price
Litecoin has been putting together some upward momentum recently, as its price has now crossed back above the $91 mark. The below chart shows how the asset has performed during the past few days.
LTC has been climbing over the last few days | Source: LTCUSD on TradingView
While the LTC price is up 13% over the past week, these profits have still been weaker than its competitors, which is why the coin is currently only the 22nd largest in the sector based on market cap.
Looks like the market cap of the asset is around $6.7 billion at the moment | Source: CoinMarketCap
Featured image from Michael Förtsch on Unsplash.com, IntoTheBlock.com, chart from TradingView.com
