Litecoin (LTC), after returning to the market following its consolidation, gradually lost some of the gains it had made. The popular altcoin traded at $67.69 with a 2.67% decrease in the last 24 hours, while data platform Santiment noted that the outlook for the Layer-1 network is positive due to the increasing on-chain transaction activity.
Litecoin’s Chain Activity is Rapidly Increasing
On-chain data platform Santiment reported a significant increase in transactions on the Litecoin network throughout the week. However, the transaction volume is currently on the negative side, decreasing by 3% to $353.19 million. Nevertheless, the data provided by Santiment shows that the total number of daily active wallet addresses on the chain averaged around 319,000 during the week, and the number of recorded whale transactions was 7,418. Both metrics are at their highest levels since June.
Such growth in recorded transactions on a blockchain network is not uncommon for Litecoin and other highly liquid Layer 1 protocols. LTC managed to benefit significantly from the recent market recovery, with its price rising by up to 7% in the past seven days and making a similar jump for the month.
Although the price of LTC is currently undergoing a correction after its recent surge, the increase in on-chain activity suggests that this negative trend could turn into a healthy one in the short term. To predict what will happen next, it is important to pay attention to the $66 level on LTC’s chart. The decline may end after the price reaches this support zone and starts recovering.
LTC Follows Bitcoin as a Driving Force
It is a known fact that Litecoin has a close correlation with Bitcoin (BTC). In this context, observable price movements of the largest cryptocurrency directly affect the price of LTC.
In the current market, BTC is open to several positive news flows that could significantly increase its price in the coming weeks and months. The most important of these news flows is the expected approval of a spot Bitcoin ETF by the U.S. Securities and Exchange Commission (SEC). Such a development could not only boost BTC’s price but also drive LTC’s price upwards, pushing the popular altcoin to record levels and beyond since its inception 12 years ago.
