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- Litecoin (LTC) network activity suggests that a major rally could be on the horizon with usage and interest reaching peak levels.
- LTC has emerged as a great viable option for small and fast transactions despite sharing most of its attributes with Bitcoin.
Litecoin (LTC) could be poised for a price rally in the coming days and weeks based on its network activity. Recent data from Santiment shows that the network is enjoying renewed interest with usage reaching peak levels. The crypto insights platform shows that Litecoin had an average of approximately 704,000 unique addresses in the past week nearly double from the month before.
The number of unique addresses has nearly doubled moving from 345,000 addresses over May to 704,000 last week. This is an illustration of the growing interest and usage of the network. Typically, this level of interest is preceded by a positive price performance.
At the time of writing, LTC is exchanging for $77 after a price dump, marking a 2.4% drop in the last 24 hours. This has seen the altcoin extend its weekly losses by 9%.
This price change does not reflect the network growth but is in line with the price trend of the wider crypto market. However, investors are confident that the network performance will be reflected in a price change soon. With the digital asset facing a drop to the $70 support and the $100 resistance retest, investors and analysts are cautiously optimistic about the long-term trend.
Is Litecoin (LTC) Undervalued?
Although Litecoin shares a lot of its attributes with Bitcoin, so much so, that it is referred to as Bitcoin’s little brother or the silver to Bitcoin’s gold. These attributes include halving every four years. Consequently, LTC underwent its halving in April but similar to Bitcoin was unable to stage a solid price rally.
It is such similarities that have further led to speculation that an LTC ETF is a likely possibility with Charlie Lee, the founder of Litecoin speculating that it is a matter of when it will be approved rather than if.
However, LTC has emerged as a leading option for payment and everyday transactions due to its faster transactions and low fees compared to Bitcoin and a majority of cryptocurrencies. As CNF has highlighted, LTC has become the most adopted crypto for payments in the industry.
Recent data by BitPay reveals that the 22nd-ranked digital asset has seen significant growth in the number of new users adopting the asset as a payment method. A 41% increase in LTC’s dominance as a payment option was recorded on BitPay, marking a new all-time high for the asset.
Since the turn of the year, the altcoin has added around 8.5% and is lagging behind Bitcoin and Ethereum, this suggests to some analysts that it is undervalued, offering investors future returns. In fact, The Relative Strength Index (RSI), a key indicator in the space shows that the altcoin is undervalued and poised for a rally.
