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.
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.