Litecoin (LTC) still down despite increased network activity before halving

The countdown to Litecoin’s third mining reward halving has begun, and the cryptocurrency has experienced a surge in network activity, indicating growing investor interest. However, Litecoin hasn’t seen any significant movement in the past 24 hours and has instead remained in the red. Litecoin’s upcoming halving, scheduled for early August, will see the block reward cut by 50% to 6.25 LTC, potentially impacting prices and the market. Despite its decline, various on-chain metrics and indicators suggest a positive future for Litecoin’s network and a promising future for the popular altcoin.

Onchain Activity Sees Surge

Recent data from IntoTheBlock shows a surge in on-chain activity for Litecoin. Since the end of April, the total count of addresses holding a balance has experienced a surge, reaching a significant milestone of 8.5 million LTC addresses last week. This active address surge not only demonstrates the growing popularity of Litecoin but also highlights the expanding user base and interest in cryptocurrency. Moreover, the number of new addresses being created and the count of active addresses have approached all-time highs, slightly surpassing the creation of new Bitcoin addresses. This growth underlines Litecoin’s robust network and the increasing adoption of the altcoin within the crypto community. The heightened on-chain volume has caught the attention of the crypto analytics platform Santiment, indicating that prominent market participants may be strategically positioning themselves in LTC investments ahead of the halving event. Santiment noted:

“If this trend of increased on-chain volume continues, it will absolutely be a strong sign that some big players are beginning to jump in on their LTC investments in anticipation of the halving.”

Litecoin Remains In The Red

Despite the surge in network activity, Litecoin’s price has not seen any notable movement in the market in the past 24 hours and remains in a continuous downtrend. Over the past 24 hours, Litecoin has seen a 2.2% loss in value. At the time of writing, Litecoin trades at $89.38 after trading slightly above $90 on Tuesday. LTC’s trading volume has decreased from $700 million last Thursday to $578 million in the past 24 hours, indicating less trading activity. However, LTC is still up 3.4% in the past week, with a market cap up by more than $200 million in the same period. Meanwhile, Litecoin’s hash rate, a measure of the computational power dedicated to the network’s mining operations, has demonstrated consistency. Despite minor fluctuations, the processing power devoted to Litecoin’s blockchain has witnessed a surge of over 24% since the beginning of the year, currently standing at 714 TH/s. This upward trend enhances network security and signifies the confidence and commitment of miners in supporting Litecoin’s ecosystem. The featured image is from Shutterstock, and the chart is from TradingView.

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