The recent market drop on Tuesday led to a significant decline in major tokens and midcaps, with concerns rising over crypto privacy and wallet security due to Google’s benchmark tests on its new Willow quantum computing chip. This decline also affected Litecoin, which plunged over 8% before eventually recovering to around $113. Despite this setback, Litecoin continues to lead several prominent altcoins in terms of network activity.
According to a recent analysis by IntoTheBlock, Litecoin has been demonstrating strong network usage as one of the older Layer 1 networks. With over 370,000 daily active addresses and more than 200,000 daily transactions, Litecoin has surpassed networks like Dogecoin, Cardano, and Avalanche in terms of activity. One key factor driving this engagement is Litecoin’s role as a cryptocurrency actively used for payments, solidifying its position in real-world use cases. Its high daily transaction volume, which is roughly equivalent to its total market cap, further highlights its utility.
Another positive aspect for Litecoin is the fact that it boasts 7.94 million addresses with a balance, with a majority of them being held by long-term holders. Notably, 72% of these holders are currently in profit, showcasing the confidence in the long-term potential of Litecoin despite short-term price fluctuations. Additionally, Litecoin’s hash rate reached a new all-time high this week, hitting 1.80 PH/s at block 2,806,273. This milestone underscores the growing security of the network, highlighting Litecoin’s resilience and continued appeal.
The hash rate increase for Litecoin comes in conjunction with BIT Mining’s announcement that its shift to mining Litecoin alongside Dogecoin has been highly profitable. The company reported nearly three times greater returns compared to mining Bitcoin alone, with BIT Mining mining 84,485.42 LTC valued at $10.7 million and 227,908,250.38 DOGE worth $94.8 million as of November 27. Both Litecoin and Dogecoin have seen notable price increases in recent weeks, further boosting their profitability.
In conclusion, despite facing a market drop and concerns over crypto privacy and security, Litecoin continues to showcase strength in network activity, usage, and security. Its role as a cryptocurrency actively used for payments and its growing hash rate contribute to its resilience and appeal in the market. Additionally, BIT Mining’s profitable shift to mining Litecoin alongside Dogecoin further emphasizes the potential profitability of these cryptocurrencies. Despite the challenges faced by the market, Litecoin remains a prominent player in the cryptocurrency space, poised for continued growth and success.
