Litecoin Transactions Surge Over 450% Thanks To BRC-20’s Attraction
- Transactions on the Litecoin network have reached all-time highs as a result of the meme coin craze.
- The consequent high costs on the Bitcoin network sent crypto users seeking for alternatives, contributing to the network’s rise in transactions.
Litecoin (LTC) has lately seen a large increase in whale transactions.
With a 450% rise since early May, this surge in big transactions might be related to the forthcoming release of LTC-20, a significant improvement to the Litecoin ecosystem.
Transactions on the Litecoin blockchain have reached all-time highs as the meme coin craze and consequent high fees on the Bitcoin network drive crypto consumers to seek alternatives.
According to BitInfoCharts blockchain statistics, Litecoin conducted more than 576,000 transactions in a single day on May 9, approaching Bitcoin’s 598,000 daily transactions. That is five times the average amount of transactions on the Litecoin blockchain compared to earlier this year, and it is more than twice the previous all-time high around the bull market’s top in January 2018.
The LTC-20 standard, which has a total supply of 84 million, is being created on top of the Litecoin Ordinals Protocols. The BRC-20 token, an experimental fungible token produced using Ordinals and inscriptions and kept on the Bitcoin base chain, is the goal of this new standard. BRC-20 is a token standard that allows users to generate and transfer tokens over the Bitcoin network using the Ordinals Protocol.
The news comes as the Bitcoin network, which is home to Bitcoin (BTC), the biggest cryptocurrency by market value, is facing high congestion as a result of a flurry of new Bitcoin-based BRC-20 tokens.
The creation of LTC-20 and the BRC-20 tokens is intended to bring considerable innovation and growth to the Litecoin ecosystem, perhaps increasing interest from both retail and institutional investors.
Because of Bitcoin’s congestion, consumers are looking for cheaper alternatives to transferring value through blockchain, such as stablecoins and the Lightning network.
Litecoin has also seen a surge in activity. According to Glassnode statistics, in addition to a record number of transactions, the number of active wallet addresses reached a new high of 718,000 on Monday. Recently, crypto users produced around 500,000 new addresses in a single day, according to the Litecoin Foundation, citing Glassnode.
The current uptick in Litecoin whale transactions might be attributed to investors awaiting the release of the LTC-20 standard and positioning themselves to profit from any possible price increase after the upgrade. Since the cryptocurrency market often sees price variations as a result of news and events, this spike in whale activity may indicate increased market interest in the imminent LTC-20 release.
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