• Bitcoin network has been facing high activity due to the emergence of BRC-20 tokens.
• This increased competition for getting transactions confirmed has resulted in an explosion in fees.
• Litecoin seems to be one of the beneficiaries of this congestion, with its daily transaction count seeing a significant surge.
Bitcoin Network Congestion
The Bitcoin network has seen a massive increase in activity due to the emergence of BRC-20 tokens, such as Pepe Coin (PEPE), which have gained rapid traction. This rise in activity has led to network congestion and an explosion in transaction fees on the blockchain, leaving investors no choice but to pay higher amounts if they want their transfers processed quickly.
Litecoin Benefiting From Congestion
On-chain data suggests that investors may be turning to Litecoin as an alternative due to its cheap transfers and fast transaction times. According to data from Santiment, the total number of Litecoin transactions taking place on the blockchain has seen a significant surge recently, likely correlating with the congestion on the Bitcoin network.
Transaction Fees Explode On Bitcoin
The competition for getting transactions confirmed is extremely high due to this increase in activity, leading to an explosion in fees for those wanting their transfers processed quickly. As a result, some holders are migrating temporarily to other blockchains such as Litecoin which offers negligible fees and fast transactions.
Growth In LTC Activity
Litecoin addresses with 1,000 or less LTC have been accumulating recently, suggesting a growth in LTC activity and adoption among investors who want faster transfers without having to pay hefty fees. The timing of this increase would match up with the congestion on the Bitcoin network, so it seems like a reasonable assumption that they are related.
Meme Coins Increase Activity On Chain
A large number of meme coins have popped up that utilize Ordinals protocol technology resulting in an even higher amount of transfers taking place on the chain than before. This further adds fuel to already existing levels of congestion and leads more investors towards alternative chains like Litecoin where they can get faster speeds at cheaper prices