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Litecoin leads Cardano 12x on THIS front – What’s going on?
Litecoin leads Cardano 12x on THIS front – What’s going on?

Written by Digital Info

June 1, 2024


Cardano’s (ADA) market capitalization has the potential to surpass Litecoin’s (LTC) by nearly $10 billion, indicating a significant opportunity for growth. However, when it comes to network activity, the comparison reveals a different story.

According to data from IntoTheBlock, the number of active addresses on the Litecoin network was 357,260 as of May 31st, whereas for Cardano, it was significantly lower at 28,630. Active addresses represent the number of unique wallets involved in successful transactions on a blockchain. It’s important to note that this metric doesn’t account for multiple transactions within a single day.

This disparity in active addresses suggests that the network activity on Litecoin was approximately 12 times higher than that of Cardano. While this may not be a constant trend, increasing network activity often correlates with a higher valuation for a cryptocurrency.

At the time of reporting, LTC was trading at $84.52, reflecting a 1.53% increase in the last 24 hours. In contrast, ADA was trading at $0.45, indicating a relatively stable price movement.

Despite Litecoin’s apparent lead in network activity, there was no significant recent development that could explain the substantial difference in market perception between LTC and ADA. This suggests that market participants currently view Litecoin more favorably than Cardano.

However, when evaluating development activity, Cardano has historically shown strength. Data from Santiment indicated a decline in Cardano’s development activity to 55.57, signaling a potential decrease in developer engagement. In comparison, Litecoin’s development activity was minimal, with a score of 0.036 on the Litecoin network.

While development activity is crucial for the long-term success of a blockchain project, it may not always directly impact prices. Therefore, the disparity in development activity between ADA and LTC does not necessarily imply that ADA will outperform LTC in terms of price performance.

In assessing the Market Value to Realized Value (MVRV) ratio, which measures profitability and cryptocurrency valuation, Cardano’s 30-day MVRV ratio was -4.932%, indicating that many ADA holders were facing unrealized losses. In contrast, LTC’s ratio stood at 12.38%, suggesting that the average LTC holder was in profit within the same timeframe.

Overall, both ADA and LTC appear to be undervalued based on current market conditions. In a highly bullish market scenario, ADA could potentially reach $0.79, while Litecoin might aim for $95.37.

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