Data shows Litecoin has seen accelerating adoption recently, as total addresses have now surpassed Ethereum.
Litecoin Has Continued To See Rapid Adoption Recently
According to a tweet from the director of the Litecoin Foundation, the growth of LTC has continued to accelerate even after surpassing Ethereum in total addresses. “Total addresses” here is an indicator from the on-chain analytics company Glassnode that measures the total number of unique addresses of cryptocurrency that have participated in at least one transaction (whether as sender or receiver) on the chain during the entire lifetime of the network.
When the value of this metric increases, it means that users are creating new addresses on the current blockchain, which can be a sign of new investors using crypto.
Now, here’s a chart showing how the trends in total address metrics for Litecoin and Ethereum compare to each other over the past few months:
The two metrics seem to have crossed each other in recent days | Source: Jay Milla on Twitter
As shown in the chart above, the total number of Ethereum addresses is greater than that of Litecoin so far. During the last few months, LTC has observed some clear growth in new addresses in the network, and while ETH has also increased, the growth has been significantly tamer.
Due to the difference between the new addresses opened in the block, Litecoin has been able to overtake Ethereum this month. However, even after ETH’s push above, LTC’s growth seems to show no signs of slowing down.
However, these indicators show a rapid increase. This means that LTC has only become more popular in terms of adoption recently. Data from BitPay, the world’s largest cryptocurrency payment processor, only supports this idea.
Think Bitcoin is the only cryptocurrency users spend? Think again. Litecoin payments are on the rise 📈. Read more: https://t.co/3j03QrH0lj pic.twitter.com/o3lVpWEPUT
– BitPay (@BitPay) January 19, 2023
From the pie chart, it appears that LTC has made up 27.64% of transactions handled by BitPay, which is higher than the percentages for Ethereum (11.66%) and Dogecoin (9.23%). The only coin that has been used more than Litecoin is Bitcoin, which accounts for 41.62% of BitPay transfers.
Litecoin sees high adoption as a mode of payment compared to other networks likely due to the fact that the cryptocurrency offers fast transactions at very negligible fees.
The price of these assets has also increased overall over the past few months, which may also attract new users to the network. More active adoption like this can be constructive for prices in the long run, as a fresh user base can provide a sustainable place for future price movements.
This year is also when the halving of Litecoin, an event where the production rate will be cut in half, is scheduled to take place. Halvings have historically been bullish for cryptocurrencies, because they make them rare, so LTC seeing more adoption ahead of this event can be an optimistic sign for investors.
District LTC price
At the time of writing, Litecoin is trading around $90.2, up 3% over the past week.
LTC moves sideways | Source: LTCUSD on TradingView
Featured images from Michael Förtsch on Unsplash.com, charts from TradingView.com, Glassnode.com