Reports Reveal An Increase In Litecoin Onchain Usage
Since early 2019, several metrics have begun flatlining indicating the potential support floor and the interest of the network users. From the start of May, however, the interest began to grow overall, based on the data provided by BitInfoCharts.
Litecoin Onchain usage is growing as transaction numbers and values rise. 📈$LTChttps://t.co/AGZDH3RpS0
— Litecoin.com (@LitecoinDotCom) May 26, 2019
On-chain transactions refer to those cryptocurrency transactions that occur on the blockchain, that is, blockchain records and remain dependent for their validity on the blockchain status. All such on-chain transactions occur and are only considered valid when the blockchain is modified to reflect these transactions in the records of the public ledger.
Over a number of key data sets, this network has increased. Mostly, on May 16th, the USD value will be sent peaking at more than $ 1.6 billion in one day. From then on, it has settled down from ~$170 m around $ 500 m.
The average Tx has also increased, with a peak of $ 47k, from about $ 7k to $ 20k. Such important transactions indicate that the network is still mainly used by affluent people to avoid traditional money transfer charges or to invest in speculative assets. This is not necessarily bad but is contrary to the idea of everyone’s smaller daily payments using these networks. Then we start to see that the use of Lightning networks is being used to manage these types of microtransactions, while there is still a lot of macro focus where it is impossible to travel large volumes.
The rich are used to avoid traditional transfers. Rich individuals use such small transactions. In essence, it goes against the notion that each person uses these networks for smaller daily payments. Litecoin also starts using Lightning Networks to manage these microtransactions. While Onchain remains macro-focused, large volumes could not be routed.
All of these metrics seem to have jumped in market prices but not proportionally with this latest recent monster rally. Prices have by far escaped any online parameters, although this increase is positive, it is not sustainable at present, and we could see a reversal. Otherwise, we may risk being in another bubble scenario sooner than we know.