The cryptocurrency world has recently experienced a frenzy around meme coins and the rising popularity of BRC-20 tokens, causing significant congestion on the Bitcoin network. As a result, crypto enthusiasts are seeking alternative solutions for transactions, and Litecoin has emerged as a viable contender.
On May 8, the number of daily Litecoin transactions soared to an all-time high of more than 525,000, nearly matching Bitcoin’s 575,000 daily transactions, according to BitInfoCharts. These figures represent a fivefold increase from the average number of Litecoin transactions earlier this year and double the previous record set in January 2018.
As Bitcoin transaction fees skyrocket due to the surge of BRC-20 tokens, users are looking for cheaper alternatives to transfer value via blockchain. BRC-20 is a token standard that allows users to create and transfer tokens on the Ordinals Protocol utilizing the Bitcoin network. This congestion prompted Binance, the world’s largest crypto exchange, to temporarily halt withdrawals via Bitcoin.
The rise in Litecoin’s popularity is further evidenced by data from Glassnode, which reveals that the number of active wallet addresses has reached a record high of 718,000. Recently, crypto users created almost 500,000 new Litecoin addresses in a single day, according to a tweet by the Litecoin Foundation citing Glassnode.
Interestingly, this influx of activity hasn’t gone unnoticed in terms of the value of LTC, Litecoin’s native token. In the past 24 hours, LTC’s value has risen by approximately 3.5% to trade at around $80, outperforming BTC’s 1% gain on the day.
Despite providing a feasible alternative to Bitcoin in terms of transactional capabilities, it is worth noting the trade-offs that come with choosing Litecoin. While Litecoin does boast faster and cheaper transactions, it may suffer from a lack of overall network security in comparison to Bitcoin. Thus, crypto enthusiasts might weigh the benefits of ease of use against potential security risks when deciding upon their transactional method of choice.
In conclusion, the rise of meme coins and BRC-20 tokens has brought about significant challenges for the Bitcoin network, paving the way for an increased interest in alternatives like Litecoin. As the cryptocurrency landscape continues to evolve rapidly, it will be fascinating to observe how these trends develop and alter the choices of crypto enthusiasts worldwide.
Source: Coindesk
