Litecoin surpasses Bitcoin again in this regard

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In December, Litecoin (LTC) became the most used cryptocurrency for payments for the second month in a row, outperforming all major assets including Bitcoin.

Litecoin beats Bitcoin again

Tracking BitPay, the world’s largest payment processor, LTC’s global payment rate increased to 38.25% in December from 34.52% in November, which is also the highest level of Litecoin Era (ATH) market share ever.

source:bit payment

It’s clear that LTC has captured a large portion of Bitcoin’s market share as Bitcoin plummeted from 30.55% to 23.24%.

In fact, if you look closely, you will find that more people choose to use LTC to purchase goods and services than BTC and ETH.

coughLitecoin network activity increases

It is worth noting that according to Glassnode data, the number of LTC transactions increased significantly in December, breaking all previous records. On December 20, the daily transaction volume reached a peak of 1.27 million.

By comparison, Bitcoin’s record for the day was less than half that number.

source: glass node

In addition, the US dollar amount transferred on the chain also increased significantly in December, with the average LTC transfer amount reaching approximately US$2.7 billion that month, the highest level since July.

source: glass node

Litecoin’s market cap remains low

Litecoin’s impressive on-chain metrics failed to create any upward price pressure on its native token. According to data from CoinMarketCap, “digital silver” lost 11% of its market value last month.

In fact, LTC has been trading significantly below its 2023 peak in recent months. Not even the halving event could support the coin, which, as of this writing, ranks 19th in the cryptocurrency market capitalization rankings.

However, there is something to be happy about when price action is flat. Litecoin’s NVT ratio is inversely proportional to trading volume and has been steadily declining over the past few months.

This means network usage is growing faster than market capitalization, which is historically considered a bullish sign.