Litecoin, a legacy cryptocurrency known for its stability, is exhibiting one of its most significant growth spurts in its nearly 12-year history, primarily due to the introduction of the LTC-20 standard and the anticipation of an approaching halving event.
Recently, Litecoin has seen a surge in activity. According to on-chain data, the number of transactions on the network has skyrocketed by 400% in a short period. This surge indicates a growing number of users, and applications are embracing the Litecoin blockchain, attributing to its recent success.
Litecoin has seen impressive growth this year! With the halving approaching and LTC20 assets picking up, the nearly 12-year-old chain is showing clear growth in a difficult market. Check out #Litecoin on-chain👇 https://t.co/YeCyRVDlyt pic.twitter.com/NHxarP1gvN— IntoTheBlock (@intotheblock) May 22, 2023
The adoption of the LTC-20 standard has played a crucial role in this success story. This standard has enabled the creation and issuance of tokenized assets on the Litecoin network, similar to the ERC-20 standard on Ethereum. The advent of LTC-20 tokens has opened up new avenues for decentralized finance (DeFi) applications, non-fungible tokens (NFTs) and other digital assets, leading to a significant increase in network usage.
Coinciding with these developments is the upcoming halving event. Halving, a deflationary mechanism built into Litecoin's protocol, is an event that halves the rewards for mining new blocks.
The remarkable thing about Litecoin's growth is the distribution of its holders. Small-to-average retail investors hold 50% of the supply, signaling a healthy dispersion of wealth, fostering a more balanced and equitable ecosystem. Additionally, old addresses hold four million LTC, showcasing the loyalty and long-term belief in Litecoin's value proposition.
Currently, 60% of Litecoin holders are in profit, signifying the financial gains that the recent price appreciation has brought to its community. Simultaneously, Litecoin's hashrate has increased by 25%, demonstrating increased security and miner confidence in the network.