Litecoin’s Rollercoaster Ride: Addresses Surge, but Prices Plunge

• Litecoin (LTC) active wallet addresses have recorded a massive upsurge fuelled by growing interest in the Bitcoin fork.
• LTC prices have continued to fall flat after a disappointing Litecoin halving earlier this year.

Litecoin (LTC) continues to draw attention from ambitious crypto investors. Driving this interest is growing adoption, network development, and faltering prices. This makes LTC an ideal candidate with little risk and high profit potential.

Recent data shows active LTC wallet addresses have reached an all-time high. Data from IntoTheBlock shows that as of December 08, Litecoin’s network activity peaked with over 1.4 million active addresses. This followed a record-breaking surge on December 5, when active addresses reached $751,000.

IntoTheBlock: the number of active addresses in the Litecoin network exceeded 1.4 million pic.twitter.com/uWrAfIVtd3

— NekoZ (@NekozTek) December 12, 2023

It remains unclear what led to the sudden surge but interest in the network is undeniable. Data from Litecoin shows that the network processed its 196 millionth transaction. Litecoin is accelerating, averaging around 1 million every day, making it one of the most active blockchains in the space. This is in part due to its popularity as a payment method. In its 12 years of existence, the token has gained traction as a preferred payment method for purchasing merchandise and service payments. As CNF recently reported, this has recently been bolstered by the token now being accepted by Microsoft.

Although there are a lot of positives in the Bitcoin fork, prices have continued to lag. One of the key concerns for LTC investors is the disappointing performance recorded during the August halving. The event, which takes place every four years, is historically a major bullish event that has seen the token rally to reach new all-time highs.

The event, which took place at block 2,520,000 on August 2, resulted in a reduction of block rewards from 12.5 LTC to 6.25 LTC per block. This halving, occurring approximately every four years, is designed to control token issuance and draw interest among the crypto community.

Optimistic investors have been drawing comparisons from Bitcoin, noting that prices often flatline after the event. Pre-halving, there is a lot of hype, and Fear of missing out (FoMO) drives demand for digital assets and fuels price rallies. Right after the event, at peak interest in the project, a majority of investors take profit, leading to a price correction that could persist for months. Prices eventually recover and go on to surpass previous highs bolstered by stronger network fundamentals.

Litecoin (LTC) Price Update

At the time of press, LTC has recorded a marginal rise of around 1 percent. This is a positive that sees the token recover after a nearly 3 percent drop in the last 7 days. Data from CNF shows the token is trading for $71.

Ahead of the upcoming Bitcoin halving, which has historically influenced the entire market and especially its forks, investors anticipate a price rally. LTC investors anticipate a retest of the all-time high of $410 reached nearly two years ago.