Over $100Bn+ was transacted on the Litecoin Network in 2019.

The Litecoin network has seen sustained usage in 2019 despite the wider collapse in the majority of the cryptocurrency markets. According to dataprovided by Bitinfocharts, over $100bn was sent over the network in the 2019 period.

This was a decrease from 2018, mainly due to bull market peak in January where $5bn a day was being transacted. Omitting this activity in the first half of the year, it appears that 2019 has seen a slight growth in the average value transferred each day from ~$200m to ~$300m.

2019 notably saw Litecoin’s 2nd halving take place which resulted in increased speculative activity on the network. Omitting this data as deviating from mean market conditions would see a roughly equivalent value transfer between 2018 and 2019. This may speak to a wider base level interest from non-speculative network participants. This base appears to have strongly formed at around $100m/day within a steady amount of ~21,000 transactions.

As a result the average transaction value has found comfortable support at ~$5k/transaction. Taking a look at median transaction values however, tells us that this is being driven up by a handful of very large value transactions as the median is much closer to $50/transaction. It may be reasonable to hypothesise that the majority of value is from a small number of high net worth individuals, funds or services.

While $100bn is a staggeringly large number in comparison, it is dwarfed by traditional payment networks such as Visa, which reports a total transaction volume of $11Tn for the 2018 period. Visa even buries Bitcoin which transacted ~2.5Tn in 2019. Of course the comparison between the two is flawed, as Litecoin is a cryptocurrency and Visa is a service for fiat currencies, it does not take into account total value sent in $USD and only gives insights into one area of the larger market .

This does mean however, that there is a long way yet to go and lots of room for the crypto markets to grow, if they are to achieve that goal of displacing the old guard.

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button