Litecoin is undeniably one of the oldest coins in the crypto space. With the advent of newer coins, however, this “blue chip” crypto has lost its importance. The coin, which once stood right next to Bitcoin, has recently struggled to maintain its 15th spot.
Even so, Litecoin recently managed to make history by overtaking Ethereum on a certain front.
Litecoin flipping Ethereum?
According to data from Santiment, Litecoin has just flipped the biggest alt in terms of active addresses. At the time of writing, the reading of this metric was well above the 500,000 mark on both coins.
Well, Ethereum’s on-chain activity may be under pressure from the high fees, but what drove LTC’s surge?
Well, CoinShares’ latest Digital Asset Fund Flow Report highlighted that Litecoin saw outflows of $ 0.2 million last week. In context, Bitcoin saw an inflow of $ 225 million over the same period. So when it comes to the LTC, institutions are definitely out of the picture. In retrospect, we only have participants from the retail sector.
Litecoin has managed to appeal to private investors in the past. At the time of writing, these investors already held more than half [51.07%] the circulating supply. Such participants are arguably seen by the community as “weak hands” as they tend to part with their HODLings during difficult times. Litecoin’s retailers are not cut from the same cloth, however.
The data from ITB showed that the average HODLing period for Litecoin was more than 1.6 years. As such, the new retail HODLers that have hit the market are likely to stick with LTC for a long time to come.
Santiment’s experimental metric “payment number” also highlighted a fascinating trend. As such, this metric measures the number of addresses Litecoins are receiving from others.
As can be seen on the attached chart, it has already topped its 2017-18 all-time high. From this it can be concluded that the token HODLers have begun to show signs of renewed interest.
Litecoin’s age-old concern – the pace of development activity – continues to track its progress. Updates related to MimbleWimble have been pretty slow lately. Lead developer David Burkett expected version v0.21 to come out during the September-October transition period, but this has been delayed due to the review process.
The implicit effect of the same was clearly visible on Santiment’s horoscope. Since the second week of October, the development activity indicator has pointed more time in the downward direction.
In order for the project to flourish, the pace of activity has to accelerate, otherwise this record frenzy would become superfluous over time.