Two Reasons why Litecoin Daily Transaction Count is up 4X
Litecoin on-chain watchers could have noticed that the number of daily transactions has been rising over the last few months.
A look at trackers indicates a sharp rise in the number of daily transactions from early January 2020, coinciding with the spike in crypto and LTC prices. Since then, the average daily transaction count, especially this year, has averaged over 100k.
One reason explaining this surge could be the rise in crypto prices. In the last few months, LTC prices expanded above $350, printing a new all-time high. This, in combination with the strong positive correlation with Bitcoin prices, might have attracted more users, explicitly seeking to capitalize on this relationship more so if they were late to tap on the BTC rally. The result, therefore, led to a high transaction count.
Yet the other could be the launch of the LiteBringer on the Litecoin network in Q3 2020. The game, taking advantage of Litecoin's low transaction fees, rejuvenated activity. The resulting 'dust' transactions, in turn, pushed the count to over 170k.
Some have criticized the Litecoin Foundation for allowing a game to spam the network. However, the foundation's project director, David Schwartz, said this is beneficial in the long-term.