ARTICLE AD BOX
- Litecoin’s hashrate surged by 30%, improving network security and adoption, but intensified mining competition is reducing profitability.
- With a declining inflation rate and increasing scarcity, LTC remains undervalued, creating a potential long-term investment opportunity.
Despite struggling to gain upward momentum in price, Litecoin (LTC) has experienced a remarkable surge in network activity. The blockchain’s hashrate has skyrocketed by 30% since the start of 2025, marking a nearly double-digit percentage growth over the past four months.
This increase signals strong miner participation and heightened network security, reinforcing Litecoin’s position as a key player in the crypto space.
High Miner Interest, But Lower Profitability
As previously reported by Crypto News Flash (CNF), Litecoin Network Secures 1.23 PH/s Hashrate and 75M Supply Milestone. The recent surge in hashrate indicates that mining competition is intensifying. However, this increased demand has also impacted miner profitability.
For instance, Bitmain’s Antminer L8—one of the most efficient ASIC miners for LTC—has seen its profitability drop by $10 over the past week. This suggests that while interest in Litecoin mining remains strong, growing competition is cutting into miners’ earnings. It is worth noting a tweet from a community member stating:
The #Litecoin network is up 30% in hashrate since the 1st week of January and has nearly doubled in the last 4 months. Bitmain’s Antminer L9 profits are down roughly $10.00 in a single day due to the influx of network hashrate over the weekend.
Network Growth and Rising Adoption
The positive outlook extends beyond mining. Litecoin’s total active addresses have climbed from 7.9 million to 8.11 million over the past three months, reflecting a significant increase of over 200,000 active users. This rising adoption suggests growing investor confidence and wider market participation, reinforcing Litecoin’s staying power.
Declining Inflation, Growing Scarcity
Increased adoption and network activity have led to a drop in LTC’s annual inflation rate—from 2.21% to just 0.6%. This decline highlights Litecoin’s increasing scarcity, a factor that could drive its value higher as supply tightens. With fewer new coins entering circulation, LTC is becoming more attractive to investors looking for long-term gains.
At the time of writing, Litecoin (LTC) is currently trading at $113.70, down 1.57% in the past day and 3.16% in the past week.
On-chain metrics suggest that LTC is currently in an accumulation phase. Its Market Value to Realized Value (MVRV) ratio sits at 0.47, indicating that Litecoin is undervalued. Historically, such conditions have been viewed as buying opportunities, suggesting that savvy investors may be positioning themselves for potential future gains.