Litecoin Boasts $2.85B Daily Transactions, Surpassing Most L1s Including Dogecoin

Litecoin processes $2.85B daily in transactions over $100K, exceeding 50% of its market cap, and outpacing Layer 1s like Dogecoin’s $590M.

IntoTheBlock revealed on X that Litecoin processes a daily average of $2.85 billion in large transactions worth at least $100,000. This figure represents over 50% of its market cap, highlighting significant whale transactions on the Litecoin network. 

Litecoin processes $2.85 billion in transactions over $100k daily (avg), over 50% of its market cap.

???? This is more than most Layer 1s. For example, Dogecoin sees $590 million in large transactions, despite having roughly 3x Litecoin’s market cap.

???? This suggests significant… pic.twitter.com/YpPKIsEMuO

— IntoTheBlock (@intotheblock) July 12, 2024

Notably, Litecoin’s large transaction volume far exceeds that of other Layer 1 cryptocurrencies. For instance, Dogecoin, with roughly three times Litecoin’s market cap, sees only $590 million in large transactions daily. This stark difference underscores Litecoin’s active network and substantial whale involvement.

Litecoin’s large transactions amount to over half of its market cap daily, indicating robust activity among large holders. The data shows that from July 5 to 10, transaction volumes peaked at around $3.3 billion and dropped to approximately $2.4 billion by July 7.

This consistent upward trend in transaction volumes highlights the active engagement of whales, who contribute significantly to the network’s liquidity and movement of funds.

Litecoin Whale vs Investor Activity

Another metric supporting the report is Litecoin’s ownership. High activity addresses, constituting 3.32% of the total, likely drive the observed high transaction volumes. 

In addition, several less active addresses also hold significant amounts. Among investors, many addresses show significant activity, indicating ongoing engagement with the network.

This activity aligns with the reported daily average of $2.85 billion in large transactions, suggesting these whales are responsible for a large portion of these transactions.

New Investor Trends and Market Behavior

Despite this robust activity, per a late May report, Litecoin had faced challenges in gaining momentum. Investors had shown a marked preference for Ethereum and other tokens within the Ethereum DeFi ecosystem. 

Consequently, as of May 29, LTC price decreased by 8%. Anticipation of funds flowing into Ethereum ETFs had also led investors to adopt diverse strategies during the crypto market consolidation phase.

Interestingly, on-chain data indicated a surge in new wallets on the Litecoin network. Following the recent ETH ETF approval, new investors created 400,000 new LTC wallets. This trend suggested new entrants were capitalizing on the LTC price dip. 

Santiment’s Total Amount of Holders chart showed an increase in active wallets, indicating that more holders were joining the network than exiting their positions.