Litecoin’s impressive surge this year, rising nearly 50%, has been overshadowed by a recent market crash that briefly dropped the altcoin below $87. However, with Litecoin’s current trading price surpassing $107, the selling pressure has subsided.
Supporting its price trajectory is a strong network growth.
Litecoin Network Participation Surges
Litecoin’s network activity has seen a significant increase. In fact, data compiled by IntoTheBlock reveals that the average daily active addresses have increased to 401,000, up from 366,000 in 2023. Meanwhile, network activity peaked in early January, reaching an impressive 1.37 million active addresses in a single day, surpassing the daily activity of Bitcoin and Ethereum at the time.
This surge indicates that the protocol’s utility and user participation are continuously improving in the cryptocurrency industry’s bull market.
Litecoin also displays data showing long-term investor confidence, with 53.9% of all LTC ever mined having not moved for over a year, indicating that a large portion of its supply remains off the market.
Furthermore, 85.8% of LTC has been held for over a month, highlighting investors’ preference for continued ownership. The average holding time for each LTC is 2.4 years, indicating that many holders not only commit to holding but also view it as a long-term investment.
What’s Next for Litecoin?
A cryptocurrency analyst predicts that Litecoin could break its previous all-time high and reach $500 in the ongoing bull market.
He acknowledges that its growth trajectory may seem slower compared to other crypto assets, but he emphasizes that its strong fundamentals and historical resilience are key factors driving the upward momentum.
Another comparison of Litecoin’s current market behavior with its performance during the 2017 bull market suggests that history may be repeating itself. Cryptocurrency seems to be showing positive signs of breaking out of a sustained consolidation phase, with relative strength index (RSI) and moving average convergence divergence (MACD) indicators signaling a bullish trend.
These technical signals suggest that the cryptocurrency may be gearing up for a surge, positioning it as a potential “dark horse” in the next cryptocurrency rebound.