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Litecoin (LTC) Performance Lagging Behind Network Activity, Santiment Analysts Say

Litecoin (LTC) network showcases unusual activity spike over last week

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Cover image via cryptocomes.com

Typically, the performance of a digital asset indicates a strong correlation with its network activity, i.e., transactional volume, quantity of new addresses, quantity of active addresses and so on. However, this rule is not universaleven for major low-volatility cryptocurrencies.

Litecoin (LTC) prints interesting gap

Analysts at top-tier on-chain analytics firm Santiment have found a surprising discrepancy between some Litecoin (LTC) network activity metrics and its price dynamics. This process began on Sept. 3 and has still not returned to normal.

Santiment shows Litecoin (LTC) price has decouple from its network activity
Image by Santiment

The quantity of Daily Active Addresses (DAA), i.e., the number of addresses that received or sent at least one Litecoin (LTC) transaction within seven calendar day, became decoupled from price performance five days ago. Once this metric becomes valid again, Litecoin (LTC) rates may witness a bullish reversal.

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Meanwhile, this spike in network activity can be also attributed to a recent quantum leap in Litecoin (LTC) real-world adoption. The world's most popular adult website, Pornhub, has added it as one of many payment instruments.

According to Glassnode on-chain data vendor, Pornhub's adoption immediately led to a significant spike in Litecoin (LTC) network activity.

Waiting for MimbleWimble

It should be noted that "Blockchain Silver" is soon to release its most crucial privacy feature of 2020, MimbleWimble protocol. It will make default transaction obfuscation available for all Litecoin (LTC) users.

As covered by CryptoComes, lead developer of the upcoming release, David Burkett, has announced that the testnet environment for MimbleWimble transactions may be activated as soon as Sept. 30.

👉 MUST READ Litecoin (LTC) to Launch MimbleWimble Testnet on Sept. 30. What Will Change for Litecoin (LTC)?related article image

This privacy-focused feature development is crowdfunded by the Litecoin (LTC) community and the founder of Litecoin Foundation, Mr. Charlie Lee.

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Vladislav Sopov

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)