Looking at the recent evolution in Litecoin transactions, interesting momentum becomes apparent. Following a massive spike in transactions in mid-September, things are returning to normal. At the same time, overall mining profitability seems to be rising again.
A Curious Litecoin Transaction Chart
Overall network activity of blockchain and crypto projects will often go through peaks and lows. A specific currency can be more popular in certain periods compared to others. To this date, no one really knows what triggered the recent Litecoin transaction spike. Going from 32,000 daily transactions to 165,000 in a few days is very unusual.
In fact, there may not be anything significant to warrant such an increase. It is true that Litecoin now has its own on-chain RPG game. That game requires users to own some LTC before they can even create a character. How popular this game is currently, remains difficult to determine.
One thing is evident: the Litecoin transaction count is returning to normal again. The peak at 165,000 is unsustainable, resulting in fewer daily transactions ever since. Yesterday, the total dipped below 100,000 TX again for Litecoin. That is still a 300% increase compared to just a few weeks ago.
Recent news regarding PayPal supporting Bitcoin, Ethereum, and Litecoin may have something to do with the growth. This feature has not been implemented as of yet, though. Furthermore, there are some rumors regarding ttiecoin and Cardano partnering for a new venture. Such news can often get people excited as well.
It is also worth pointing out Grayscale has confirmed there is a big demand for LTC and BTC. The investment firm provides exposure to cryptocurrencies through its different investment vehicles. Litecoin and Bticoin are, apparently, noting strong demand. How much that influences the transaction court, is impossible to gauge.
Transaction Value and Mining Profitability
Even though there is a significant spike in overall Litecoin transactions, the overall TX value is not budging. In fact, the value has remained between $1,000 and $2,000 for several weeks now. Those amounts are still more than respectable for a network most people appear to be ignoring. However, it is a steep decline compared to the average of nearly $9,000 sent every day throughout August of 2020.
In terms of LTC mining profitability, things are looking up again. More specifically, the overall profitability has risen slightly in the past week. This increase from $1.3 to $1.6 per Ghash/second is not necessarily spectacular. However, it goes to show that mining Litecoin still remains viable in late 2020.