Litecoin Hashrate Up But Price Down 32% in a Year

The Litecoin (LTC) hashrate reached a new record high on Jan. 31, surging to 1.0057P.

According to BitInfoChart data, the hashrate of Litecoin has been rising steadily. However, on Dec. 21, it dropped to 591T. Just 10 days prior, on Dec. 11, the Litecoin mining difficulty was measured at 892T.

Litecoin hashrate dynamics. Source: BitInfoChart

Litecoin Hashrate Surges, Yet Miners’ Revenues Decline

According to minerstats, Litecoin mining profit is decreasing. This figure ranges from -$0.52 to -$6.82, depending on the hardware and electricity costs.

Litecoin mining profit. Source: minerstats

However, Glassnode shows miners have started receiving more LTC for transactions. The total transaction fees started to rise sharply from Nov. 20-23. Higher transaction fees create extra income for miners, as they share the fees for every block they contribute to.

On Nov. 22, the total transaction fee for Litecoin stood at just over 11 LTC. By Dec. 19, this figure had risen to 32.5 LTC. On Jan. 1, it decreased to 24.5 LTC but remained higher than the figures recorded in November.

Litecoin Total Transaction Fee Growth. Source: Glassnode

This can indicate high activity in the Litecoin network. The more often users make transfers, the more commissions are paid. 

BitPay says Litecoin remains the most popular cryptocurrency for transactions as of November 2023. LTC holds 38.25% of this market, while Bitcoin holds 23.24%.

Ranking of the most used cryptocurrencies for transactions. Source: BitPay

Litecoin also recently announced that the network has processed more than 16 million transactions as of Jan. 26. 

2023: A Positive Year for Litecoin, But Price Lags Behind

According to CoinMarketCap, the price of LTC has lost about 32% over the year. The cryptocurrency ranks 19th in terms of market capitalization. Above it is Shiba Inu (SHIB), and below it, in 20th place, is Bitcoin Cash (BCH). 

Comparing the price dynamics of Litecoin and Bitcoin Cash, it appears that LTC will experience a decline, although not with abrupt movements.

Comparison of the price of Litecoin and Bitcoin Cash. Source: CoinMarketCap

Perhaps this indicates the period of LTC accumulation. Since November, the token’s price has remained roughly in the same $62-$74 range. For comparison, Litecoin was worth $102 in March 2023. 

Glassnode data shows a sharp increase in active Litecoin addresses. From June to November 2023, the number did not exceed 320,000. Then there was a sharp increase to 1.160 million, followed by 1.433 million on Dec. 20. 

On Jan. 1, a total of 916,976 active addresses were recorded.

Litecoin active addresses as of March 2023. Source: Glassnode

Litecoin may gain popularity due to its strong performance in 2023 due to transaction growth. Also, the potential approval of Litecoin ETF cannot be dismissed, even if it is a mere rumor.

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