Santiment on-chain data aggregator has reminded the community about the upcoming halving of Litecoin, which will take place in August this year. Halving is a programmed event after which proof-of-work miners begin to create half the number of coins and their rewards also drop by half.
As there are less than three months to go before that remarkable event, LTC wallets' activity has suddenly increased. Santiment suggests a reason for this surge in transaction activity.
LTC wallet activity hitting record high
Over the past few weeks, address activity on the Litecoin network has been going up substantially. Aside from the number of transactions with LTC rising, the amount of small wallets has gone up as well.
Now, the number of unique LTC wallets that have been actively interacting and making transfers has surged. Still, Santiment data shows that these transactions are small in size.
⚡ #Litecoin has its rapidly approaching #halving in August. With just 3 months to go, our latest insight looks at the sudden massive increase in active addresses, as well as how #LTC20 is shaking up the network activity and supply distribution of wallets. https://t.co/cwvxPfTZM6 pic.twitter.com/yXCHJkqiEo— Santiment (@santimentfeed) May 12, 2023
Reason for LTC wallet activity spike
A likely reason for the aforementioned activity surge, per Santiment, is the fact of Litecoin rolling out LTC20, an experimental implementation of this standard for NFTs. This sparked a heated discussion in the LTC community on social media.
Per Santiment data, small wallets holding up to 0.001 LTC have been growing fast in number, while the number of active addresses has also been going up.
According to data shared by another popular on-chain data company, IntoTheBlock, the number of LTC transactions three days ago almost caught up with that on the Bitcoin chain. After Litecoin introduced the LTC20 standard, BRC20 tokens have begun to flow to this network and 840 LTC20 tokens have been created so far.
At the time of this writing, LTC is trading with a 2.09% rise over the past 24 hours, hitting the $80.81 price mark, according to CoinMarketCap.