- LTC’s share of global payments rose to an ATH of 38.25% in December.
- Litecoin’s daily transactions peaked in December.
An important milestone: Litecoin [LTC] became the most used crypto for payments for the second month in a row in December, outperforming all major assets including Bitcoin [BTC].
Litecoin beats Bitcoin again
As tracked by the world’s largest payment processor BitPay, LTC’s share of global payments rose to 38.25% in December, up from 34.52% in November. This was also Litecoin’s all-time high (ATH) in terms of market share.
Source: BitPay
It was clear that LTC captured a large portion of Bitcoin’s market share as the latter’s pie fell sharply from 30.55% to 23.24%.
In fact, a closer look revealed that more people chose to purchase goods and services using LTC than BTC and Ethereum. [ETH] combined.
Litecoin is seeing an increase in network activity
It was worth noting that the number of LTC transactions rose significantly in December, breaking all previous records, AMBCrypto found using Glassnode data. Daily transactions peaked at 1.27 million on December 20.
By comparison, Bitcoin recorded less than half of this figure on the same day.
Source: Glassnode
Furthermore, the USD value of coins transferred over the chain also saw a significant increase in December. LTC transfer volume averaged about $2.7 billion this month, the highest since July.
Source: Glassnode
Litecoin’s market capitalization is still on the low side
All said and done, Litecoin’s impressive on-chain indicators failed to put any upward pressure on its native token. ‘Digital Silver’ lost 11% of its market value last month CoinMarketCap.
In fact, LTC has been trading significantly below its 2023 peak in recent months. Even the halving event failed to provide a meaningful boost to the coin, which at the time of publication was ranked 19th among cryptos by market capitalization.
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However, there was something to cheer about amid the muted price action. Litecoin’s NVT ratio, which is negatively correlated with transaction volumes, has been steadily declining in recent months.
This implied that network usage exceeded market capitalization growth, which has historically been seen as a bullish signal.
Source: Santiment