The Litecoin also referred to as the LTC, has been ranked fifth according to the market capitalization of the crypto-coin, having it valued at $114. But when looking at the trading volume in just the last 24 hours, the coin was ranked in the fourth position on the CoinMarketCap.
According to the Director of Lite Foundation, Franklyn Richards, there have also been several other metrics that have shown the crypto asset some favour. It was cited in a previous blog post that the LTC on chain metrics was static for several months; this was until May 2019.
It was noted that there were several activities taking place this is after several analysts cited there was an increased adoption together with an upcoming halving as being the main reason that was behind the upswings that were noted with the assets.
The token is not performing as well as expected
When looking back at the asset on May 16th, the director suggested that the data for the network in USD has skyrocketed to about $1.6 billion. The last time the token was able to record high returns was in February 17th 2018 at levels of $2.66 billion, and after this, the token did not post any impressive figures ever since.
But this is not all as the token still had its glory days back in 2017, when it was able to record values of about $12.5billion. Thus the data that are being recorded have greatly diminished if we are to make a comparison.
The other metric the director pointed at was the Average transaction volume, on May 16th 2019 it was found at levels of $47.2k. On February 13th 2018 is the last time that the coin was able to reach the peak at levels of $65k.
“Such sizeable transactions indicate the network is still primarily being used by affluent individuals to avoid traditional monetary transfer fees or as a speculative asset in which to invest. Not that this is necessarily bad; however, it runs contrary to the idea of these networks being used by the everyman for smaller daily payments.”
The network had reached the levels of 129.56k active addresses, this is by April 6th 2019, which was at levels of 50k in the same month.
After this, it was noted that the levels decreased, by May 27th 2019 the number of active addresses had reached too about 65k. When looking through this is not the best indicator for the network participants, because regularly issuing a significant amount of addresses is mainly practised by the crypto exchanges in the market.
But the good thing is that the daily transactions had slowly increased from 20k to about 27k. However, If we are to compare the figure with previous transactions, we could say easily say that the statistics were stale. Especially during the time, the LTC was being priced at $400.
“Price has by far and away ran away from any on chain metrics meaning while this growth is positive it is not currently sustainable and we could see a pullback. Otherwise, we may risk finding ourselves in another bubble scenario sooner than we realize.”