- Litecoin network witnessed a heartened usage in the year 2019 in spite of the broader collapse in the majority of the cryptocurrency markets.
- The result of this is that the average transaction value has gained comfortable support at approximately $5k/transaction.
- This comparison made between the two is entirely faulty, as Litecoin is a cryptocurrency, and Visa is a service for fiat currencies.
Litecoin network witnessed a heartened usage in the year 2019 in spite of the broader collapse in the majority of the cryptocurrency markets. As per the data provided by Bitinfo charts, more than $100bn has transacted over the network in the 2019 period.
As compared to the year 2018, there was a decrease, primarily because of the bull market peak in January, where $5bn transacted in a day. If you delete this activity in the first half of the year, one realizes that the year 2019 witnessed modest growth in the average value transferred every day from $200m to $300m.
2019 was also the year when Litecoin’s 2nd halving took place. This resulted in increased speculative activity on the network. However, this data can be omitted since it deviates from the mean market conditions and would also see a roughly equivalent value transfer between the years 2018 and 2019.
This converses with a more broad base level interest from the non-speculative network participants. The base had strongly formed at around $100m/day. Further, a steady amount of almost 21,000 transactions also seen.
The result of this is that the average transaction value has gained comfortable support at approximately $5k/transaction. If you have a look at the median transaction values, you will realize that this is being driven up by a handful of large value transactions as the median.
Additionally, it is also much closer to $50/transaction. By looking at the data, it seems tenable to hypothecate that the majority of value is from a minute number of high net worth individuals or services.
$100bn is a tremendously large number in comparison. However, it dwarfed by traditional payment networks like Visa, which has reported a total transaction volume of $11Tn for the year 2018 period. Visa has also left Bitcoin behind, which had transacted ~2.5Tn in 2019.
This comparison made between the two is entirely faulty, as Litecoin is a cryptocurrency, and Visa is a service for fiat currencies. It extirpates the total value sent in USD and only provided insights into one area of the broader market.
However, this does indicate that there is a long journey to accomplish, and there is a big room for the crypto markets to grow if they aim to achieve the goal of supplanting the old guard.