Litecoin reaches a new major milestone after the August halving

Litecoin (LTC) has seen notable growth in network activity recently. According to data from IntoTheBlock, the number of active addresses on the Litecoin network reached an all-time high of over 1.4 million on December 8, 2023.

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Capture transactions and compare them to Bitcoin

This increase is partly due to the launch of the LTC-20 token standard, which is based on the Litecoin Ordinals Protocols. This is a variant of Bitcoin’s BRC-20 standard that is intended to create tokens on the Litecoin network. In addition to the growth in active addresses, the number of Litecoin wallets with funds has also increased, by more than 40% since the beginning of this year.

What is noteworthy is that the number of transactions on the Litecoin network exceeded that of Bitcoin (BTC) several times. On November 14, it peaked at 1.09 million transactions, compared to Bitcoin’s 523,284. A similar trend was observed on December 8th. Litecoin transactions reached 846,561, compared to “only” 411,321 for Bitcoin.

The impact of the Litecoin halving

The start of the increase in network activity coincides with the recent LTC halving in August, which saw the miner reward halved from 12.5 LTC to 6.25 LTC. Historically, halvings often lead to price increases, as has been seen several times with Bitcoin. However, unlike BTC, Litecoin experienced a decline in value shortly after the halving.

The halving event reduced the inflation of new LTC tokens by 50%. This is part of a four-year cycle that, like BTC, is designed to increase the coin’s scarcity. Nevertheless, the price of Litecoin fell shortly after this event, indicating the “buy the rumor, sell the news” phenomenon commonly seen in the crypto world. Will we see this at the Bitcoin halving in 2024?

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Although the price of LTC is currently under pressure, the increased activity on the network remains an important signal for investors. It shows that usage of the network is still at a healthy level.

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