Litecoin trading volume drops to a two-year low

by in Cryptocurrency News

Litecoin

Litecoin (LTC) in 2020 was unable to recover from losses incurred after the August 2019 halving.

The volume of transactions with this altcoin fell to the lowest level since 2018. The number of daily transactions is approximately $80 million. That is around 50% higher than EOS, but 45% lower than the level recorded a year ago when the Litecoin network processed transactions totaling up to $ 146 million per day.

The project, founded by Charlie Lee, began to experience difficulties from the very beginning of 2020. The creator of altcoin even turned to the miners and urged them to support the project. A decrease in activity on the blockchain indicates a drop in investor interest in this asset.

Trending: BNB Chain Gets Back to Normal After a Hack Estimated $100 M

On July 9, LTC fell to $ 45.6, and altcoin's capitalization fell to $ 2.963 billion. In the middle of the week, Cardano even knocked out Litecoin from seventh place in the ranking of the largest cryptocurrencies.

The amount of operating fees on the Litecoin network has fallen to a minimum since October 2015. Now the commission is $ 0.11. The block size has shrunk below 0.2 megabytes. For comparison, the average block size in the bitcoin network is more than 1.2 megabytes.

Transaction fees fell because the network has a very low need for sending funds. However, it’s too early to talk about the impending collapse of altcoin, the researchers note. It is known that investors tuned for long-term LTC storage do not sell cryptocurrency. The share of coins that have not been moving for 12 months or more exceeds 57%.