Litecoin Experiences Record-Breaking Transaction Activity as Bitcoin Struggles with Congestion
The popularity of BRC-20 tokens has caused transaction fees on the Bitcoin blockchain to hit a two-year high, leading many crypto users to scramble for cheaper alternatives such as stablecoins and the Lightning network. The surge in BRC-20 token popularity has also caused Binance, the world’s largest crypto exchange, to temporarily halt withdrawals via Bitcoin.
As Bitcoin struggles with congestion, Litecoin has experienced a surge in transaction activity, with more than 525,000 transactions executed on May 8th alone. This is close to Bitcoin’s daily transaction average and five times the average number of transactions on the Litecoin blockchain compared to earlier this year.
Litecoin’s surge in activity is likely due to its reputation as a cheaper and faster alternative to Bitcoin, with lower transaction fees and faster processing times. Additionally, the recent meme coin frenzy has driven up fees on the Bitcoin network, further incentivizing users to seek out alternatives like Litecoin.
In addition to the record-breaking transaction activity, Glassnode data shows that the number of active wallet addresses on Litecoin rose to a record high of 718,000 on May 8th. The Litecoin Foundation also reported that almost 500,000 new Litecoin addresses were created in a single day recently. These numbers indicate that the surge in transaction activity is not just a temporary spike but rather a sustained increase in user adoption.
New addresses being created on #Litecoin are now exceeding new #Bitcoin addresses. $LTC #MondayMotivation #crypto pic.twitter.com/NNJ4RfXeD6
— Litecoin Foundation ⚡️ (@LTCFoundation) May 8, 2023
The price of LTC, the native token of Litecoin, has also seen a boost, jumping about 3.5% in the past 24 hours and trading at around $80. This outperforms Bitcoin, which is up roughly 1% on the day.
The trend of crypto users seeking out alternatives to Bitcoin is likely to continue as congestion on the network persists. Litecoin’s recent success demonstrates that there is a demand for cheaper and faster alternatives, and it will be interesting to see if other cryptocurrencies follow suit in the coming weeks and months.
Read more:
- Litecoin Community Conducts Test Project “Lite” On LTC Ordinals With LTC-20 Standard
- Charlie Lee Predicts Litecoin Price To Gain Against Bitcoin With 10% Upside Target