Litecoin [LTC] surpasses BTC amidst growing congestion – is it enough to increase adoption
- The demand for Litecoin could have increased after the recent announcement of the LTC-20 token standard.
- Litecoin Ordinals reached a significant milestone of reaching one million inscriptions.
Litecoin [LTC]’s journey over the past year resembled nothing less than a roller coaster. While it was one of the best performing cryptos during the bear market of 2022, the momentum has lost considerable steam in 2023.
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As per CoinMarketCap, the token shed 21% of its value in the last three months. On a weekly basis, LTC recorded losses of nearly 10% to settle at its press time value of $79.27.
However, despite the continuing periods of decline, the LTC fanbase got a big reason to cheer as far as network adoption was concerned. The new addresses getting created on Litecoin surpassed new addresses on Bitcoin [BTC], as per a tweet posted by the Litecoin Foundation.
— Litecoin Foundation ⚡️ (@LTCFoundation) May 8, 2023
A new token standard from Litecoin?
The demand for the Litecoin network could have increased after the recent announcement of LTC-20 token standard for Litecoin NFTs. While the announcement was not made by official Litecoin sources, it was the members of the Litecoin community who are experimenting with the new standard.
The first deployed LTC-20 was
Supply of 84,000,000:
Minted Fully OUT:
21,000 Inscriptions made at 4,000 max amount per transaction.
Congrats on this major success!https://t.co/c2FmPwoEkf
— Litecoin Punks (@LitecoinPunks) May 2, 2023
Litecoin was following in the footsteps of Bitcoin as the LTC-20 standard is a fork from the BRC-20 standard on which Bitcoin Ordinals NFTs are based. The standard is being developed on top of the Litecoin Ordinals Protocols, with the supply being 84 million.
It is to be noted that Ordinals made their debut on the Litecoin chain in February 2023 after software developer Anthony Guerrera launched the Litecoin Ordinals project on GitHub after forking the GitHub repository for Bitcoin Ordinals. Recently, the Litecoin Ordinals reached a significant milestone after reaching 1 million inscriptions.
One Million Litecoin Ordinals and counting!
? #Litecoin ?
— Litecoin Foundation ⚡️ (@LTCFoundation) May 9, 2023
State of on-chain activity
After reaching an all-time high in early April, Litecoin’s hash rate has retreated, indicating less traffic on the network. On 8 May, the hash rate plummeted to 630 TH/s, its lowest in two months. Given BTC’s growing congestion, Litcoin could be a suitable alternative.
How much are 1,10,100 LTCs worth today?
This was reflected in investors’ sentiment for which entered the positive territory after a sharp move upward on 8 May. Moreover, the number of LTC holders grew 5% since the beginning of May, lending credence to the lucrativeness of Litecoin. Interestingly, this happened despite the MVRV Ratio plunging into negative territory.
Litecoin’s halving event is now less than three months away, which will be its third after 2015 and 2019. This could be another factor that could drive LTC demand and subsequent accumulation in the near term. Historically, LTC prices have soared in the aftermath of the halving.