Transactions on the Litecoin blockchain have surged to all-time highs as the meme coin frenzy and subsequently high fees on the Bitcoin network send crypto users scrambling for alternatives.
On May 8, Litecoin executed more than 525,000 transactions in a day, coming close to Bitcoin’s 575,000 daily transactions, according to blockchain data from BitInfoCharts. It is five times the average number of transactions on the Litecoin blockchain compared to earlier this year and more than double the previous all-time high near the peak of the bull market in January 2018.
The development comes as the Bitcoin blockchain, the home of bitcoin (BTC), the largest cryptocurrency by market capitalization, is experiencing an extreme level of congestion due to a frenzy of new Bitcoin-based BRC-20 tokens. BRC-20 is a token standard that lets users create and transfer tokens on the Ordinals Protocol using the Bitcoin network.
The rising popularity of BRC-20 tokens has pushed Bitcoin transaction fees to the highest level since May 2021, after BTC hit a then-record peak of around $64,000. It also led Binance, the world’s largest crypto exchange, to temporarily halt withdrawals via Bitcoin early Monday.
Litecoin has garnered a fresh wave of activity, too. Glassnode data shows that on top of a record amount of transactions, the number of active wallet addresses rose to a record high of 718,000 on Monday. Crypto users also created almost 500,000 new Litecoin addresses in a day recently, the Litecoin Foundation tweeted citing Glassnode.
— Litecoin Foundation ⚡️ (@LTCFoundation) May 8, 2023