In recent weeks, Litecoin [LTC] has faced challenges in maintaining an upward trajectory in its market value. Nonetheless, the cryptocurrency has witnessed notable growth in its network performance.
Notable 30% Increase in Litecoin Hashrate
As reported by IntoTheBlock, Litecoin’s network has observed a substantial 30% surge in hashrate since the beginning of 2025. This surge in hashrate in the last four months has been close to double digits.
This remarkable progression indicates a significant rise in mining activities, signifying a boost in miner engagement and heightened network operations.
Consequently, there appears to be persistent high demand among miners.
However, this expansion and the increased appeal of the network to miners have impacted their profitability.
For instance, the profitability of the Bitmain’s Antminer L8, a leading ASIC miner for LTC, has dwindled by $10.00 in the past week.
This decline indicates that intense competition among miners has unfavorably influenced miner involvement.
Impact on LTC Market Evaluation
The escalating network activity mirrors the confidence of both investors and miners in the market. This positive sentiment is observable not only among miners but also across all market participants.
For instance, the total active addresses related to Litecoin have continued to grow steadily over the last three months. In this period, active addresses have surged from 7.9 million to 8.11 million, showcasing an increase of over 200k active users.
This surge suggests a heightened adoption rate with an influx of new traders joining the market.
The increased demand and adoption levels have led to greater scarcity for LTC, resulting in a notable decline in the annual inflation rate from 2.21 to 0.6.
This reduction implies that the cryptocurrency is becoming scarcer, rendering it more appealing to investors as reduced supply propels its market value upwards.
Lastly, the MVRV ratio for Litecoin indicates that the cryptocurrency is experiencing an accumulation phase, where long-term holders are acquiring the asset at lower prices.
With an MVRV ratio of 0.47, it indicates that LTC is presently undervalued, presenting a favorable opportunity for investment.