Litecoin has experienced a remarkable growth trajectory this year, with its valuation soaring by nearly 50%. Despite a brief dip during the latest market downturn, which saw the altcoin momentarily slip below $87, Litecoin has shown resilience and now trades above $107. This upward path is driven by the robust expansion of its network.
The activity on the Litecoin network has seen significant growth.
According to data from IntoTheBlock, average daily active addresses have increased to 401,000, up from 366,000 in 2023. Early January marked a peak in network activity, with a remarkable 1.37 million active addresses recorded in a single day—surpassing the daily activity level of both Bitcoin and Ethereum during that period.
This surge highlights the protocol’s increasing utility and user engagement amidst a bullish phase in the cryptocurrency market. Long-term confidence in Litecoin is evident, with data showing that 53.9% of all mined LTC has remained unmoved for over a year, signifying a large portion locked away from immediate market circulation.
Additionally, 85.8% of all LTC has been held for more than a month, emphasizing investors' inclination towards sustained ownership. On average, each LTC is held for 2.4 years, indicating a commitment to holding it as a long-term investment.
One crypto analyst has forecasted that Litecoin may exceed its previous all-time high (ATH) and reach $500 during the ongoing bull market. Although its growth might seem slower compared to other crypto assets, the analyst pinpointed its strong fundamentals and historical resilience as key factors for a potential upswing.
Another analyst compared Litecoin’s current market dynamics with its performance in the 2017 bull run, suggesting that history might soon repeat. The cryptocurrency shows promising signs of breaking out from its current consolidation phase. Indicators such as the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) suggest a bullish trend.
These technical signals imply that Litecoin might be gearing up for a significant rise, positioning it as a potential "dark horse" in the upcoming crypto rally.