Litecoin Surpassed Bitcoin as Most Commonly Used Crypto for Payments: Bitpay

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BitPay Data Reveals Litecoin’s Dominance with a 38.25% Market Share

  • Litecoin achieves an unprecedented 38.25% market share in global payments, outperforming major assets, including Bitcoin.
  • BitPay’s December statistics highlight a surge in Litecoin transactions, reaching 1.27 million daily transactions on December 20th.
  • Despite a market cap loss and trading below its 2023 peak, Litecoin’s declining NVT ratio signals strong network utilization, hinting at a bullish trajectory.

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In December, the cryptocurrency market witnessed a significant shift in payment preferences, marking a notable milestone for Litecoin. As the most commonly used cryptocurrency for transactions, Litecoin (LTC) outpaced even Bitcoin in global payments for the second consecutive month. This report delves into the key data provided by BitPay, the world’s largest payment processor, shedding light on Litecoin’s dominance and its impact on the broader market.

BitPay’s statistics for December revealed a historic achievement for Litecoin, with its market share surging to an all-time high of 38.25%. This impressive performance surpassed major assets, including the widely recognized Bitcoin (BTC). In comparison to November, LTC experienced a substantial percentage increase in its share, while Bitcoin’s market share witnessed a notable decrease from 30.55% to 23.24%. These figures underscore Litecoin’s growing prominence as the preferred cryptocurrency for global transactions.

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Litecoin’s Transactions Surge and Network Activity

BitPay’s findings shed light on a noteworthy trend in user behavior—more individuals opted to conduct transactions using Litecoin than Bitcoin and Ethereum combined. This preference for LTC was further substantiated by Glassnode data, revealing a surge in daily transactions. On December 20th, Litecoin reached a peak of 1.27 million daily transactions, surpassing Bitcoin by more than double on the same day.

The on-chain transfer volume of Litecoin also experienced a substantial increase in December. Averaging around $2.7 billion throughout the month, this figure represented the highest transfer volume for LTC since July. In contrast, Bitcoin recorded less than half of this value on the same day. The data underscores Litecoin’s growing utility as a preferred choice for transferring digital assets.

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Litecoin’s Market Performance and Positive Signals

While Litecoin demonstrated impressive on-chain indicators and transaction activity, its market performance told a different story. Over the last month, LTC experienced a loss of 11% in market value, trading below its 2023 peak. Even with the occurrence of a halving event, traditionally expected to boost a cryptocurrency’s value, Litecoin did not experience a significant upswing. As of the latest data, Litecoin held the 19th position in the list of cryptocurrencies ranked by market capitalization.

Amidst the challenges in market performance, there are positive signals worth noting. The NVT (Network Value to Transactions) ratio for Litecoin exhibited a steady decline over the past few months. This ratio, negatively correlated to transaction volumes, historically signals a bullish trend. The declining NVT ratio indicates that Litecoin’s network utilization has outpaced market cap growth, suggesting underlying strength despite recent market challenges. This positive indicator raises optimism for the future trajectory of Litecoin within the cryptocurrency landscape.

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