- Litecoin experienced a wave of active addresses, reaching 13 million.
- As the halving approached, miners faced challenges with falling fees.
Litecoin [LTC] is buzzing with activity and increased engagement in recent weeks, fueling users’ excitement. A recently observed statistic revealed a significant increase in activity.
However, this excitement appears to be limited as miners on the network are witnessing a drop in an important metric.
Litecoin resolves spike
a Sanitation chart revealed an interesting development for Litecoin. After a long period of steady activity, there was a sudden increase in active addresses. Specifically, around May 4, the number of active addresses shot up from 5 million to 6 million.
At the time of writing, the active addresses stood at about 13.3 million. It also peaked at nearly 14 million before falling.
Source: Sentiment
While the exact cause of this increase remains uncertain, a plausible explanation could be the impending halving. The halving, which will take place in two months, will reduce the mining reward for Litecoin from 12.5 to 6.25 LTC.
This anticipation of a significant change in the mining landscape could have led to increased interest and activity among Litecoin users.
Litecoin miners see lower fees
While Litecoin holders are buzzing with excitement and increased activity, miners on the network have not experienced the same impact. The miner fee chart of Glasnode point out a possible reverse effect.
Upon studying the chart, it became clear that LTC miners witnessed two spikes in fees on May 10 and 15, over 20 LTCs.
Source: Glassnode
However, there is a subsequent drop in fees after those spikes. At the time of writing, the fee hovered around 11 LTC, one of the lowest points on the chart. With the halving on the horizon, this statistic is likely to see a further decline.
Positive price development continues
The Litecoin price trend showed positive and negative movements as shown on the daily time chart. From June 1 to 3, LTC witnessed successive upward trends resulting in gains of more than 5%.
However, it has recently returned to a downtrend, marking its second straight day of decline at the time of writing.
Source: TradingView
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Litecoin was trading around $92.8 at the time of writing and was down about 1.4%. Despite this dip, it still showed a positive price run.
The price remained above the short moving average (yellow line), initially acting as a resistance level for Litecoin.