Why Litecoin active addresses spike is not a bullish sign

Source Fxstreet
  • Litecoin active addresses exceeded those of Bitcoin and Ethereum in the past 24 hours, hitting 718,200 temporarily.
  • In the first week of 2024, a total of 2 million ordinals have been inscribed on Litecoin, partly explaining the sharp increase.
  • LTC price movement is slow despite rising address activity, retail traders begin accumulation.

Ordinals made headlines for congestion on the Bitcoin blockchain, the NFT-like assets have caused a spike in active addresses on Litecoin (LTC). The surge in address activity is therefore unlikely to fuel a rally in LTC as the hype surrounding ordinals increases.

Litecoin price has fallen nearly 12% weekly and 18% monthly.

Also read: Chainlink supply on exchanges hits six-month low, fueling LINK price recovery thesis

Ordinals hype increases, Litecoin active addresses rise

Litecoin blockchain’s active addresses crossed 697,000 (at the time of writing) in the past 24 hours, according to data from BitInfoCharts. The number eclipsed Bitcoin and Ethereum’s active addresses, supporting the thesis of rising activity on the Litecoin blockchain.

Typically, a rise in address activity is considered a bullish sign for LTC price. However, in this case, it is related to the surge in ordinals inscription in Litecoin. These NFT-like assets inscribe data, text, images, and video in on-chain data on the LTC blockchain. 

Litecoin tweeted through its official X account that a total of two million ordinals have been inscribed on the LTC chain in the first week of 2024. 

Litecoin price fails to deliver expectations

Data from crypto intelligence tracker Santiment suggests that as of January 5, Litecoin, Maker (MKR) and LidoDAO (LDO) noted a rapid increase in addresses. This increase is typically associated with a rise in market capitalization. While both Maker (MKR) and LidoDAO (LDO) delivered, Litecoin is yet to see a price rally. 

LTC

Litecoin, LidoDAO and Maker address activity and prices. Source: Santiment 

At the time of writing, Litecoin price is $64.55 on Binance. In the past week, LTC holders were hit by a 12% decline in the altcoin’s price and an 18% decline in a monthly time frame. Since the recent address activity surge cannot be considered a bullish sign for LTC price recovery, it remains to be seen where LTC price is headed.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Silver Price Forecast: XAG/USD rallies to $38.40 favoured by a softer US Dollar Silver (XAG/USD) is rallying for the third consecutive day on Friday, with bulls testing July 15 highs of 38.40 at the time of writing.
Author  FXStreet
13 hours ago
Silver (XAG/USD) is rallying for the third consecutive day on Friday, with bulls testing July 15 highs of 38.40 at the time of writing.
placeholder
Cardano (ADA) Flashes Bullish Signal—Is the Rally Just Beginning?ADA is now consolidating and might attempt a clear move above the $0.8650 zone.
Author  NewsBTC
13 hours ago
ADA is now consolidating and might attempt a clear move above the $0.8650 zone.
placeholder
Asian stocks climbed following record highs with gains led by Taiwan and AustraliaOn Friday, Asian stocks rose after U.S. markets hit new highs, supported by positive economic data and mixed corporate results.
Author  Cryptopolitan
13 hours ago
On Friday, Asian stocks rose after U.S. markets hit new highs, supported by positive economic data and mixed corporate results.
placeholder
AUD/USD advances further beyond 0.6500 amid notable USD weaknessThe AUD/USD pair is building on the previous day's bounce from the vicinity of mid-0.6400s, or a three-and-a-half-week trough, and gaining strong follow-through positive traction on Friday.
Author  FXStreet
14 hours ago
The AUD/USD pair is building on the previous day's bounce from the vicinity of mid-0.6400s, or a three-and-a-half-week trough, and gaining strong follow-through positive traction on Friday.
placeholder
Pound Sterling set for third straight week of losses amid growing UK labor market concernsThe Pound Sterling (GBP) remains near an over two-month low around 1.3375 during the European trading session on Friday.
Author  FXStreet
14 hours ago
The Pound Sterling (GBP) remains near an over two-month low around 1.3375 during the European trading session on Friday.
Related Instrument
goTop
quote