The median transaction value of a cryptocurrency is often an indication of overall network health. Keeping that in mind, Litecoin is not looking too great right now. Reaching a five-year low for median transfer value is not something anyone had expected to see.
Smaller Median Transfer Value for LTC
- The median transfer value of a crypto asset depicts the average value of network transactions.
- Looking at the successful transactions for Litecoin, a clear downtrend has been forming.
- Since 2017, the median transfer value on Litecoin has decreased on a regular basis.
- Yesterday, a five-year low was reached, which is not exactly a promising sign.
- With a current median transfer value of just 0.584 LTC, the decline in average value continues unabated.
- Previously., the lowest point was 0.603 LTC per transaction. recorded on August 20 of this year.
- It is unclear why the median transaction value is decreasing for Litecoin, as it remains a cheaper network to move value across.
- Additionally, the number of transactions on the network has recently seen a strong increase.
- More transactions usually lead to a stable median transaction value, rather than seeing it decrease it even further.
- The price of Litecoin has tapered off a bit since late August, moving from $62.6 to $47.88 in relatively quick succession.
- A lower price doesn’t warrant moving smaller amounts of LTC across the network on average.
- Turning this ship around will be challenging, although Litecoin remains a relatively healthy network.