Since the start of this year, many onchain metrics have been flatlining. This action indicates that there is a potential floor of intrinsic user interest in the network and more support. However, as of the early part of May, user interest in this section of assets has once again started growing over the board according to Litecoin data by BitInfoCharts. Now analysts are predicting that the price of Litecoin will pull back despite this increase in Onchain usage or user interest. What does this mean for Litecoin price prediction?
The coin’s network interest doesn’t appear to coincide with the price of Litecoin in the crypto market. This is beginning to look like a potential delayed response. For now, it remains to be seen whether this recent action is actually an anomaly or whether it will eventually go back to the mean.
Onchain Usage Has Increased in USD Value
The network has reportedly seen increases across a broad range of key data sets and one of note is the USD value peaking at just over $1.6 billion in a one-day period which was on May 16. However, it has since settled at $500 million from $170 million. It is noteworthy to indicate that these figures are still pale when compared to the initial figures attained during the 2017 runup in digital asset prices. At the time network users’ interest were regularly exceeding $2 billion. At some poin, it managed to hit an eye-watering $12 billion daily all-time high.
The Average Transaction Value Has Moved From $7k to 20k
The Average Transaction value of the network has also seen a major increase from about $7k to $20k to peak at $47k. Such a sizeable number of transactions indicate that the Litecoin network is still primarily used by affluent individuals. They hope to avoid traditional transfer fees or to use the medium as a speculative asset to invest in. Not that this is evil, however, it is actually contrary to the idea of networks being used by average people regularly for smaller daily payments.
Yet again we have entered the beginning to of more usage for Lightning networks to handle microtransactions while the onchain usage remains fully macro focused where it won’t be feasible to route bigger volumes.
Litecoin Price Prediction: Litecoin’s Number of Active User Addresses Have Reason – Litecoin Price Forecast
Active Addresses have also seen a rise and peaked at over 80k; however, this does not necessarily indicate more network participants as anyone can issue a large number of addresses as is common practice with exchanges managing deposits and withdrawals. What’s more, telling, however, is that the number of daily transactions has risen from 20k to 27k. Again, far below the price peak of $400 but an early sign that more intrinsic usage is starting to pick up.
All these metrics appear to have jumped with this latest recent monster rally up in market price but not proportionally. The price of Litecoin has by far and away ran away from any onchain 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.
Litecoin Price Prediction: What is the Price Of Litecoin Today? – Litecoin Price Forecast
At press time, the price of Litecoin is $114.29, according to Coin Market Cap. The coin has seen an impressive 13.76% growth in the past 24 hours and the bullish steam still blows hot with the rest of the crypto market. The total market cap of Litecoin is $7,081,251,984, with a 24 hour volume of $6,507,370,149. How high can Litecoin go? Should the market expect a pullback as predicted?