Digital Silver has seen a massive increase in addresses active alongside other large-cap cryptocurrencies.
The number of active addresses on Litecoin, the ninth largest cryptocurrency by market cap, has grown more than sixfold in the past year, data from on-chain analytics service Glassnode shows.
David Schwartz, project director at the Litecoin Foundation tweeted.
The increase in wallet usage is accompanied by an increase in prices. Litecoin is currently worth over $ 13 billion and is trading at over $ 202 with a circulating supply of 66 million LTC at press time. This is a substantial increase from last year – which saw LTC drop to as low as $ 30 by May 2020.
But an adjustment could be made soon. As the image below shows, Litecoin trades below the 34 EMA (exponential moving average), a tool used by traders to determine market trends. A support exists at $ 195 – meaning a favorable level can see buyers step in.
However, on-chain data from IntoTheBlock shows a neutral signal, meaning that Litecoin could see price action change between $ 195 and $ 200 in the coming weeks. The indicators for net growth and large volumes are trending up, but signals of focus and momentum indicate a downtrend.
A strong fundamental factor driving Litecoin’s growth is the upcoming Mimblewimble release. The update will bring better privacy, scalability, and speed to Litecoin, and will be integrated into its underlying code once it is reviewed and finalized.
According to a Litecoin Foundation post earlier this week, the code of the so-called MimbleWimble expansion block is now complete and ready for official evaluation by other Litecoin auditors (the developer behind Mimblewimble is David Burkett).
“Litecoin’s MimbleWimble is now codified.”
Release following the launch of the MimbleWimble testnet in September 2020, targeting technical users. The less technical and user-friendly testnet will be made available to the public in the coming weeks.