Litecoin is showing one of its most significant growth spurts in almost 12 years. Possible reasons for this are the LTC-20 standard and the imminent halving of the coin.
Number of transactions up by 400%
Recently, Litecoin has seen a surge of activity on its network. According to on-chain data, the number of transactions on the network has skyrocketed by 400% in a short period of time. This increase indicates a growing number of users. It is also seen that applications are also embracing the Litecoin blockchain. This contributes to the coin’s recent success.
The adoption of the LTC-20 standard has played a critical role in this success story. This adjustment on the net has enabled the creation and issuance of tokenized assets on the Litecoin network, similar to the ERC-20 standard on Ethereum. In addition, it enables new applications for decentralized finance (DeFi), non-fungible tokens (NFTs), and other digital assets, which has led to a significant increase in network usage.
Coinciding with these developments, is the upcoming halving event. Halving is built into the Litecoin protocol and means that the rewards for mining new blocks on the network are cut in half.
Healthy network
The remarkable thing about Litecoin’s growth is the distribution of the coins among all holders. Small to medium retail investors own 50% of the supply, indicating a healthy diversification. This promotes a more balanced and equitable ecosystem. In addition, long-standing wallets hold four million LTC, demonstrating the loyalty and long-term belief in the Litecoin.
Currently, 60% of Litecoin holders are making a profit, indicating the financial benefits the recent price increase has brought to the community. In addition, Litecoin’s hashrate has increased by 25%, indicating increased security and more miners’ trust in the network.