- Litecoin transactions have surged, outpacing Ethereum in network activity.
- LTC and ETH prices have declined in the past 24 hours, yet they may soon achieve significant milestones.
- Litecoin saw a 75% increase in active addresses, a testament to its growing usage.
Litecoin surpasses Ethereum in network activity, showing substantial growth in active addresses amidst market volatility.
Impressive Surge in Litecoin Transactions
In an unexpected turn of events, Litecoin (LTC) has eclipsed Ethereum (ETH) in terms of transaction volume. On 6th June, the number of active addresses on the Litecoin network saw a staggering 75% increase, amounting to 602,720 active addresses. This significant rise marks the highest level of activity the network has experienced since January.
Comparison with Cardano and Market Implications
Active addresses are an essential metric used to gauge the number of unique wallets involved in successful transactions on a blockchain. Recently, Litecoin also registered higher figures than Cardano (ADA), showcasing its growing prominence. However, most of the transactions originated from wallets maintaining relatively small balances. Despite this, wallets holding between $10,000 and $10 million in LTC also actively transacted, indicating broad-based activity across different holding sizes.
Interestingly, the surge in transactions did not translate into an immediate price increase for Litecoin. At present, LTC is valued at $83.52, reflecting a 1.8% decrease over the last day. Meanwhile, Ethereum is trading at $3,791, having also experienced a minor decline.
Market Cap to Thermocap Ratio Analysis
An examination of Litecoin’s market cap relative to its thermocap ratio, a metric that compares a cryptocurrency’s valuation to the total security expenditure by miners, reveals insightful patterns. A high market cap to thermocap ratio generally signals that a coin is potentially overvalued, often leading to a market correction. Currently, Litecoin’s ratio stands at 0.00000003, a significantly low reading compared to its historical highs, implying a possible undervaluation.
Potential Discount on LTC and ETH Prices
Given the low market cap to thermocap ratio, Litecoin may be trading at a discount. Should market conditions turn bullish, LTC’s price could surpass the $100 mark. To support this hypothesis, the Market Value to Realized Value (MVRV) ratio was reviewed. The MVRV ratio assesses the profitability of holders relative to the coin’s valuation.
At present, Litecoin’s 30-day MVRV ratio is 13.35%, suggesting that average holders would profit if they sold now, potentially inviting a wave of profit-taking. For Ethereum, the 30-day MVRV ratio is 4.69%, indicating that ETH might be in a similar position to LTC, though Litecoin holders could be slightly better off.
Future Outlook for LTC and ETH Prices
Considering current metrics, there is potential for Ethereum’s value to breach the $4,000 threshold in the mid-term. Concurrently, Litecoin might also overcome its $100 psychological resistance level. This optimistic outlook is contingent on maintaining or increasing current transaction levels and broader market trends turning favorable.
Conclusion
In summary, Litecoin’s recent surge in transactions surpassing Ethereum highlights a notable shift in network activity. Despite recent price declines, both LTC and ETH appear poised for potential gains if market conditions improve. Stakeholders should closely monitor these developments as they could signal significant investment opportunities in the near future.
