Litecoin (LTC) has had a disappointing performance in the second quarter of 2024, despite starting the year positively. The price of LTC has fallen by nearly 5% in a single move due to bearish pressure.
However, the Litecoin network has been experiencing significant growth. According to data from IntoTheBlock, the number of active addresses on the Litecoin blockchain spiked by 75% in a single day, reaching over 600,000 on June 8th. This surge in addresses is a new high since January, indicating increased interest in the LTC blockchain.
The rise in active addresses has pushed Litecoin ahead of Ethereum in terms of network activity. Additionally, the volume of transactions on the Litecoin network also increased significantly, surpassing 426,000 on Thursday.
Despite the positive growth in network fundamentals, the price of LTC has not seen a significant increase. As of now, the price stands around $80.28, reflecting a 4.5% decline in the past day.
Strong network fundamentals and growth in user activity can impact the price of cryptocurrencies. However, in the case of Litecoin, the recent network growth has not translated into a higher price. The impact of network fundamentals on asset prices is not always straightforward.