Litecoin celebrates two milestones as it struggles to hold relevancy
Litecoin is said to have now processed nearly one and a half times more transactions this year than in 2022
ivosar/Shutterstock, modified by Blockworks
Litecoin has managed to eke out a milestone — processing its 180 millionth transaction — even as litecoin (LTC) the asset — once the second-largest crypto behind bitcoin — struggles to remain relevant in the eyes of crypto investors.
A post on X, formerly Twitter, by the Litecoin Foundation celebrated the win on Tuesday, including that in 2023 alone the platform has seen over 51 million transactions, surpassing last year’s total of 39 million.
However, despite the welcomed activity, Litecoin’s financial and operational health remains in question. Data from the project’s primary GitHub repository shows no code commits have been conducted in the last five months.
Compounding problems, the project’s native token of the same name has witnessed a staggering decline of roughly 45% in its value since July, dropping from a local peak of $114 to its current standing at $63.
Its downward slide is a stark contrast to its soaring all-time high of $413, posted more than two years ago. The narrative of digital silver to bitcoin’s gold has lost its sheen.
Litecoin’s fee revenue further underscore the project’s tumultuous journey, which, despite processing more transactions than the previous year, has fallen considerably.
In May 2021, during the throes of the previous bull run, fees generated by Litecoin peaked at $186,000. However, as of October this year, that figure has since plummeted by 68%, settling at a modest $6,000, data from Token Terminal shows.
Such fluctuations hint at varying transaction volumes or changing user activity dynamics as the bear market continues to bite, pushing certain projects further out of the minds of investors.
While the platform boasts a circulating supply of 73.5 million LTC and a market cap of $5.3 billion, up 2.2% over the last 30 days, the crypto has dropped to 15th spot, Blockworks Research shows.
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