- Litecoin is showing a strong rebound after hitting new Q2 2024 lows of around $70 in June.
- This rapid uptrend is largely driven by a significant increase in Ordinal inscriptions.
- More than 25 million Ordinals have been inscribed on the Litecoin network, with a staggering 1.5 million added in the last two weeks alone.
Litecoin sees a resurgence, driven by a record-breaking surge in Ordinal inscriptions, positioning the network as a viable and scalable alternative to Bitcoin and Ethereum.
Over 25 Million Ordinals Inscribed On Litecoin
As of June 27, Litecoin reported over 25 million Ordinals inscribed on its proof-of-work network. The record-breaking addition of 1.5 million Ordinals in just two weeks underscores the growing interest and robustness of the network.
Litecoin transactions are notably cheaper compared to Bitcoin and Ethereum, thanks to lower transaction activity and better scalability. Data from BitInfoCharts indicates that Litecoin’s average transaction fee stood at $0.0037 on June 28, a figure that has remained relatively stable even after the introduction of Ordinals in early 2023.
This consistent low transaction fee enhances the network’s ability to handle an increasing number of Ordinal inscriptions, proving its resilience and scalability. The Ordinal boom is more than just a technical feat; it signals a growing interest and potential for greater adoption. For instance, early June saw a 75% surge in active addresses and a marked increase in transactions by 426,000, pushing network activity to its highest level in six months and surpassing even Ethereum.
Given that Litecoin is a Bitcoin fork, it utilizes the same mechanics for Ordinal inscriptions. These inscriptions leverage Litecoin’s blockchain to immutably and transparently store arbitrary data, including texts and images. As all inscriptions are stored on-chain, their authenticity and provenance can be readily verified by other network participants.
Picking Up From Bitcoin Success, Miners Benefit
The success of Ordinal inscriptions on Bitcoin has paved the way for similar implementations on Litecoin and Dogecoin. In early 2023, developer Anthony Guerrera successfully launched these tools on Litecoin, leveraging both SegWit and Taproot upgrades originally introduced on Bitcoin.
However, it’s worth noting that while Ordinals on Bitcoin have been criticized for causing network congestion and increased transaction fees, this has inadvertently benefited miners by boosting their revenue in periods of low profitability. The introduction of the Runes Protocol following Bitcoin’s halving on April 20 has further driven up transaction fees, providing much-needed support to miners who had seen their earnings plummet.
Conclusion
In summary, Litecoin’s resurgence is largely attributed to the booming Ordinal inscriptions, setting new records and showcasing the network’s stability and scalability. As transaction fees remain low and activity rises, Litecoin positions itself as a cost-effective and efficient alternative in the cryptocurrency landscape. For miners and users alike, the increasing interest and activity on the network offer promising signs for future growth and adoption.
