Retail interest can fuel rallies, but an excessive amount can lead to FOMO-related price tops. Overall, these metrics suggest that the rally in Litecoin’s price is driven by a combination of boostd interest and participation from investors and traders.
Litecoin has experienced a significant surge in price recently, with on-chain data suggesting that the latest price rise can be attributed to increasing transaction volume and social dominance. The on-chain analytics firm Santiment has discussed the underlying metrics of Litecoin, stating that Transaction Volume and Social Dominance are crucial indicators.
Transaction Volume keeps track of the total amount of tokens (in USD) involved in transfers on the LTC network. The Litecoin transaction volume recently surged, and it is now at a peak of $3.97 billion, the highest level since June 2023.
High network activity usually leads to cryptocurrency price volatility, and in this case, the rise in activity has been followed by a rise in the asset’s price, suggesting investors have been participating in accumulation. The Social Dominance indicator reveals the percentage of total social media discussions related to the top 100 coins that Litecoin contributes to.
The LTC Social Dominance has also seen a recent rise, with discussions about the coin contributing around 1.1% of the sector’s total. High Transaction Volume indicates a high level of trading activity and investor interest.
