Litecoin, the 22nd largest cryptocurrency, has maintained a high transaction volume since December 2021, the most prolonged period in the network’s history.
Data from crypto analytics platform Santiment indicates that the network has maintained a pretty impressive transaction volume over these five months. The network’s minimum transaction has remained above $20 million, the highest level held for a long time.
image source: Santiment
Litecoin was designed to be a payment option for Bitcoin because of Bitcoin’s slow transactions and high cost. Litecoin processes transactions in just a quarter of the 10 minutes. Bitcoin takes to settle transactions, making it a desirable network for payments.
Transaction volume may indicate rising interest in Litecoin
The crypto market has been down, and altcoins, including Litecoin, are not left out. The asset is down about 40% over the last year. This is the trend with other altcoins such as XEM, IOTA, and EOS, some lower than others.
However, the data showing high transaction volume maintained over five months may indicate that crypto users are developing more interest in using the asset for payments. In addition, Litecoin is currently accepted anywhere Visa cards are accepted, giving it a broader user base despite the low interest around the asset before now.
Why Litecoin may soon explode
A significant predictor of potential price increase is a high transaction volume which indicates utility. As more people use a digital asset, the price is expected to increase, which may be the case with Litecoin.
Though it is not sure when the price may appreciate, this data suggests that the network has a rising number of users which may eventually translate into the price, especially as the crypto market is still down. A consolidation phase is in play ahead of the following upward movement, which hasn’t happened.