Litecoin (LTC), one of the oldest cryptocurrencies, continues to witness network growth in 2023 ahead of its halving event scheduled for August.
Notably, after a volatile run, the number of daily active addresses and new addresses on the Litecoin blockchain has returned to an upward trajectory again, seeing a 7-day increase of 28% and 54.6%, respectively, according to IntoTheBlock data as of June 19, 2023.
The surge comes just days after LTC’s total addresses reached a milestone of 200.7 million, surpassing Ethereum’s (ETH) 181 million, data by on-chain market intelligence platform Glassnode showed on June 17.
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Why is Litecoin seeing network growth?
The surge in the number of daily active and new addresses, as well as total addresses on the Litecoin chain point to a considerable increase in interest in one of the most popular assets in the crypto market.
Additionally, in May, Litecoin overthrew Bitcoin for the first time on a key metric – the number of new addresses per day according to on-chain sleuth and LTC proponent Shan Belew. Further, Litecoin witnessed robust growth when it comes to on-chain volume, Belew noted in his Twitter thread.
Although the recent network activity growth could be due to a number of factors, one of the most obvious drivers is the upcoming Litecoin halving event, which will take place on August 3, 2023.
Halving refers to a programmed reduction in the rate at which new LTC coins are awarded to miners. Happening every four years, the impending halving will reduce LTC block reward from the current 12.5 LTC to 6.25 LTC.
Historically, halving events were followed by significant price gains in the respective cryptocurrency, and since Litecoin is set for one in less than two months, the network growth does not come as a great surprise.
Litecoin price analysis
At the time of writing, Litecoin was trading at $76.96, down 0.37% on the day.
Over the past month, the altcoin plummeted more than 16% and has experienced a very wide trading range during that period, from $72.5 to $96.9.
Meanwhile, Litecoin’s current support zone is at $65, indicating a level where buying pressure has historically been strong. On the other hand, the nearest resistance zone lies at $80, which was previously a support level but now may act as a barrier for price movement. If Litecoin manages to surpass this resistance, the subsequent resistance levels to watch out for are $90 and $105.
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