On-chain data shows the Litecoin active addresses have reached a new all-time high recently. Here’s what this could mean for the asset’s price.
Litecoin Active Addresses Recently Set New All-Time High Of 1.4 Million
According to data from the market intelligence platform IntoTheBlock, the number of LTC active addresses has sharply spiked recently. The “active addresses” refer to those Litecoin addresses that are taking part in some kind of transaction activity (whether as a receiver or sender) on the blockchain.
The indicator of interest here is the total daily count of such unique active addresses. This metric’s value may be considered analogous to the total amount of traffic on the network.
When the indicator goes up, it means that more users are taking part in transactions on the blockchain right now. This kind of trend suggests that interest around the cryptocurrency is high currently.
On the other hand, declining values imply that investors may be putting their focus elsewhere as fewer of them are making use of the network for any kind of activity.
Now, here is a chart that shows the trend in the Litecoin daily active addresses over the past year:
Looks like the value of the metric has observed a large spike in recent days | Source: IntoTheBlock on X
As displayed in the above graph, the Litecoin active addresses had registered a huge spike last month with the network suddenly coming alive, but the activity had only lasted for a bit before it calmed back to relatively low levels.
In the past few days, the indicator has observed another surge, this time with an even higher peak, leading to the network setting a new all-time high of 1.4 million active addresses.
Since this peak on December 8, the Litecoin active addresses have seen some decline, but are still at very high levels. Thus, this current surge has at least lasted for longer than the previous spike.
LTC Has Gone Through Some Volatility Recently
Now, what does the spike mean for the cryptocurrency’s price? Generally, a high amount of interest from investors makes for a ripe environment for volatility. It’s always hard to say which direction such volatility might go in, however, as investors can become active for buying and selling alike.
Given the price action Litecoin has observed recently, it would appear that some buying indeed took place initially as the cryptocurrency rose above the $79 level during the weekend.
LTC appears to have seen a plunge recently | Source: LTCUSD on TradingView
Over the last couple of days, though, LTC has plunged hard as it’s now trading around the $72 mark. While the investors may have switched towards selling now, the active addresses remaining high can still be crucial for the return of bullish momentum.
As mentioned before, a large amount of interest provides fuel for volatile moves in the price, so as long as investors stay active, there is still a chance Litecoin can turn itself around. It would be concerning, however, if the traders lose interest in the asset at this stage.
Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, IntoTheBlock.com