The increased popularity of Ordinals in the cryptocurrency world has led to a surge not only in Bitcoin’s blockchain activity but also in Litecoin’s, the 12th largest cryptocurrency by market cap. Just last week, Litecoin’s blockchain hit a record-breaking 584,838 transactions in a single day, as indicated by the crypto data website Bitinfocharts. While the activity has somewhat dipped, it is still higher than any previous usage levels for Litecoin.
The rising interest in Ordinals – similar to NFTs as they enable the inscription of digital assets like pictures or moving images on a blockchain – has led to a notable increase in Litecoin’s value. The cryptocurrency, with the ticker LTC, has become one of the best-performing digital assets in the past week, with a 12.6% increase in value and a current trading price of $91.43, according to CoinGecko.
So, what is driving this growth? It seems that the introduction of Ordinals to Litecoin’s blockchain back in February has garnered significant attention. The Litecoin Foundation, a non-profit organization that promotes cryptocurrency adoption, revealed that more than 2.6 million Litecoin Ordinals have been inscribed on the blockchain. The foundation claims that the Litecoin network has been able to handle the increased enthusiasm without any issues, while maintaining the same transaction fees.
On the other hand, this craze for Ordinals has placed pressure on Bitcoin’s blockchain, leading to surge in transaction fees that have reached two-year highs. This has sparked some discontent within the community.
Litecoin, created in 2011 as a rival to the well-known Bitcoin, aimed to provide a cheaper peer-to-peer cash system. While it has not been successful in surpassing Bitcoin in terms of adoption, the current increase in Ordinals-related activity might just be the catalyst Litecoin needs.
However, it is crucial to consider both sides of the story. With growing popularity comes increased scrutiny, as some argue that the Ordinals craze might be short-lived or may harm the environment due to the energy-intensive activities surrounding it. While Litecoin may be enjoying the benefits of the recent surge in adoption, it is yet to be seen how this momentum will sustain in a rapidly changing cryptocurrency landscape.
In conclusion, the rise in popularity of Ordinals has ushered in an era of increased transactions and value for Litecoin, which has so far managed to cope without issues. Nonetheless, the cryptocurrency community should remain cognizant of potential drawbacks, ensuring that long-term sustainability remains at the forefront of any further developments in this space.
Source: Decrypt
