Litecoin [LTC] Outperforming Peers
• LTC has been one of the best-performing crypto assets, with gains of over 15% in the last seven days.
• Transaction fees on the Bitcoin network have caused users to shift towards less expensive alternatives like LTC.
• The correlation between LTC and BTC has decreased, indicating that the asset is moving on a different wavelength.
Transaction Fees On Bitcoin Network Spike
The increasing transaction fees on the Bitcoin network have prompted many users to look for more affordable alternatives. Litecoin [LTC], which is known as “silver to Bitcoin’s gold”, was one of the beneficiaries of this trend as it surged in value by over 15% in the last week. This was also due to the introduction of LTC-20 token standard – a fork from BRC-20 standard which powers NFTs based on Bitcoin Ordinals.
Network Activity Surges But Whales Stay Away
The increased popularity of Litecoin has led to a surge in network activity and holders realizing profitable returns at current market prices (about 58%). However, large addresses were yet to join in as there was no noticeable spike in transactions transferring tokens worth more than $100,000.
Correlation With BTC Decreases
Blockchain analytics firm IntoTheBlock revealed that Litecoin’s correlation with BTC decreased from 0.5 to 0.34 – an encouraging sign which implies that LTC could become resistant or less affected by changes in BTC price movements.
Overall, Litecoin continues to outperform its peers and is becoming increasingly popular due to its lower transaction fees and independent movement compared to other crypto assets such as Bitcoin.