Litecoin has always been one of the more intriguing cryptocurrency networks. Despite a loyal community, everyone seems to ignore this network mainly. A three-year high in sending addresses and the number of active addresses confirms something is brewing behind the scenes.
Litecoin Is Rising Again
Even though the Litecoin price has noted a solid performance in 2021, the ecosystem seems to lack any degree of excitement. Other than the speculative LTC price value, few people seem to talk about what Litecoin brings to the table or how it can be a viable cryptocurrency in 2021 and beyond. However, the vast majority of community members appear to be well aware of why this network matters.
Judging by the number of active addresses hitting a three-year high, things are certainly getting intriguing. Over 16,300 addresses sent or received LTC over the past week, which is a strong increase compared to Q3 2020. At that time, barely 7,000 unique addresses were moving Litecoin across the network. These numbers are still a ways off from the highs of 2017 and 2018, yet the growth seems to indicate Litecoin may revisit those levels shortly.
However, it is interesting how the rising number of active addresses negatively impacts the mean transaction volume. Both statistics are inversely correlated, which is not necessarily how things are supposed to go. With a seven-day moving average of 89.254 LTC, it is evident very few people use this network for large-scale transactions of any kind.
It is also worth mentioning the mean transaction volume has been on the decline for some time now. That is not unusual for Litecoin, as it goes through these peaks and lows regularly. However, with levels now hitting lows not seen since late November 2020, a bit of a worrisome trend is taking shape.
Are People Cashing Out?
The main concern when there is an increase in sending addresses is whether people are buying or selling Litecoin. It can be difficult to gauge, yet Glassnode confirms the number of sending addresses is rising spectacularly. The all-time high for sending addresses is roughly half of the active addresses today, indicating there is no immediate threat of a Litecoin price dump just yet.
Just because the number of sending addresses hits a three-month high doesn’t mean people are selling every LTC they have either. The median transaction volume is too low to create any genuine concern in that regard, for now. Moreover, the Litecoin price has not seen any unusual fluctuations either, confirming not too many people intend to sell right away.
Like always, these statistics represent a mere snapshot at a specific time. Anything and everything remains subject to change, and no one knows where Litecoin will head next. Most of the momentum hinges on where Bitcoin heads over the coming days and weeks. If a new all-time high is recorded, Litecoin will directly benefit from this momentum.