The Litecoin network has soared this month. As halving (halving) approaches, the adoption of the currency is increasing. Addresses have also continued to skyrocket. This further reinforces the sentiment that the market is bullish primarily on Litecoin, thanks to the upcoming halving.
According to InTheBlock, a market intelligence platform, Litecoin is closing out May on a strong note. The network appears to have outperformed other rival networks, as new addresses have soared to a whopping 8.5 million.
Litecoin ($LTC) network activity increased as August approached, as the cryptocurrency often referred to as the silver to Bitcoin’s gold is set to experience its third halving event at that time. The event will reduce the per-block reward from the current 12.5 Litecoin (LTC) to just 6.25 LTC, a move that history suggests could spur an increase in demand and thus a potential increase in price.
In the run-up to the halving, which is scheduled for August 10, the Litecoin price has risen to $92, reflecting a string of solid gains. However, the price increase is just one facet of the excitement surrounding the upcoming event. Several key metrics on the blockchain also point to a healthy and vibrant Litecoin crimson.
Data from IntoTheBlock, a leading blockchain analytics company, indicates that Litecoin purple activity has been robust. The overall number of Litecoin addresses with balance has seen a substantial increase since the end of April, reaching nearly 8.5 million.
In addition, the number of new and active crimson addresses has been hovering around all-time highs set earlier this year, and there was even a brief period where new Litecoin address creation surpassed Bitcoin.
Crypto analytics platform Santiment has noted that the increased volume on the blockchain could be a strong indicator of institutional interest in Litecoin, particularly in light of the upcoming halving event. CoinShares’ latest digital asset fund flows report has shown that while crypto funds lost millions, LTC and XRP attracted investors.
The firm also highlights an increase in unique addresses interacting on the Litecoin network, a trend that could be interpreted as users accumulating Litecoin before the halving.
The halving event also has a noticeable effect on the Litecoin derivatives market. As reported by CryptoGlobe, LTC futures derivatives contracts have seen open interest exceeding $420 million, marking an impressive 22% growth since the beginning of the year.
Open interest refers to the number of outstanding derivative contracts. According to data analyzed by preferred cryptocurrency analyst Rekt Money, Litecoin “tends to rally quite strongly before halving,” with the cryptocurrency up 820% after bottoming 122 days before its first halving, and rising 550 % after bottoming 243 later. of its second halving.
Historically, the cryptocurrency rallied the most after its halving event. After its first halving, LTC increased by 12 400 %, while after its second halving, it increased by 1573 %.
Over the past month, Litecoin, a cryptocurrency often referred to as the silver to Bitcoin’s gold, has seen a steady climb, exhibiting nearly 7% growth and increasing in value from $86 to $92.
By Marina Meza
