Litecoin [LTC] transactions skyrocket; Does the credit go to Bitcoin [BTC]?  

• LTC’s daily active addresses increased considerably over the last seven days. 
• Metrics and market indicators looked bullish for LTC.

Litecoin’s [LTC] number of daily transactions skyrocketed recently, suggesting increased usage of the network. This was good news for Litecoin, as it can further boost its adoption. However, what caused this surge? Is this a consequence of Bitcoin’s increase in fees? 

Read Litecoin’s [LTC] Price Prediction 2023-24

Good news for Litecoin

As per Bitinfocharts, LTC’s daily transactions were low in the initial part of the year. However, things changed since 30 April when the graph moved up unprecedentedly.

At press time, the number of transactions on the blockchain per day stood at 576,000, which is a commendable achievement. 

A rise in the number of transactions usually means that more users are present on the network.

This was further proven by Santiment’s chart. As per the latest data, LTC’s daily active addresses registered an uptick over the past week, indicating increased adoption of the blockchain. 

Source: Santiment

What caused this surge? 

While there are multiple speculations, a major reason behind LTC’s rise could potentially be Bitcoin’s [BTC] higher fees.

Bitcoin’s fees recently went up, and most of the credit for it goes to Ordinals. The surge in BTC’s fees might have driven users to look for alternative blockchains with lower fees for executing transactions. 

LTC was quick to respond

During this episode, LTC’s price action turned bullish. According to CoinMarketCap, LTC’s price increased by more than 1.5% in the last 24 hours.

At the time of writing, Litecoin was trading at $79.85 with a market capitalization of over $5.8 billion. A look at LTC’s on-chain performance further revealed that things have turned in its favor.

For instance, LTC’s Binance funding rate went green. This indicated higher demand for the coin in the derivatives market.

Positive sentiments around LTC were also relatively up, which by and large is a good signal. Litecoin’s whale transaction count remained high, suggesting its popularity among the big players in the crypto industry. 

Source: Santiment

Realistic or not, here’s LTC’s market cap in BTC terms

What next for LTC?

A look at Litecoin’s daily chart gave hope for better days, as a few of the market indicators were bullish. For example, LTC’s MACD displayed a bullish crossover.

Its Money Flow Index (MFI) went up marginally as well, increasing the chances of a continued uptrend. Nonetheless, nothing can be said with utmost certainty as LTC’s Relative Strength Index (RSI) took a sideways path below the neutral mark. 

Source: TradingView