Litecoin is exhibiting one of the most significant growth spurts in its 12-year history due to the introduction of the LTC-20 standard and the prospect of the upcoming halving.
According to on-chain data, the number of transactions on the Litecoin network increased by 400 percent in a short period of time. This rise points to a rapidly increasing number of users. However, apps are adding to its recent success by adopting the Litecoin blockchain.
Halving Influences Network Growth
The adoption of the LTC-20 standard has played an important role in the growth of the asset.
This standard allows the creation and issuance of tokenized assets on the Litecoin network, similar to the ERC-20 standard in Ethereum. The emergence of LTC-20 tokens has led to a significant increase in network usage, opening new avenues for decentralized finance (DeFi) applications, NFTs and other digital assets.
We can cite the upcoming halving event as another reason for Litecoin’s growth. Halving, a deflationary mechanism in Litecoin’s protocol, is an activity that halves the rewards for mining new blocks.
Another remarkable thing about Litecoin’s growth is the distribution of its holders. Small-to-average retail investors hold 50 percent of the supply, indicating a healthy distribution of wealth and promoting a more balanced and equitable ecosystem. In addition, former addresses hold four million LTC, demonstrating loyalty and long-term belief in Litecoin’s value proposition.
Currently, 60 percent of Litecoin holders are in profit, which shows the financial gains that the recent price increase has brought to the community. At the same time, Litecoin’s hashrate has increased by 25 percent, revealing that the security and miner trust in the network has also increased.
