Throughout the previous month, Litecoin [LTC] has faced challenges in sustaining an upward trajectory in its price trends. Nevertheless, the digital currency has witnessed substantial growth in its network operations.
Notable Increase in Litecoin Network Hashrate
Reportedly, Litecoin’s network has observed a 30% escalation in Hashrate since the beginning of 2025. In the last four months, the hash rate has experienced close to double-digit growth.
This remarkable development indicates a significant rise in mining activities, signifying increased participation among miners and a substantial surge in network operations.
Consequently, the demand from miners remains notably high.
However, this growth and heightened demand for the network among miners have impacted their profitability.
For instance, the profitability of Bitmain’s Antminer L8, an efficient ASIC miner for LTC, has decreased by $10.00 in the past week.
This decline indicates that intense competition among miners has had an adverse effect on miner participation.
Implications for LTC Price Trends
The escalating network activity indicates a shared confidence in the market by both investors and miners. This positive sentiment is not restricted to miners but is embraced by all participants in the market.
For instance, the total active addresses in Litecoin have continued to increase over the last three months, rising from 7.9 million to 8.11 million, showcasing a surge of over 200k active users.
This surge signals a growing adoption rate, with an influx of traders entering the market.
The heightened demand and adoption have led to increased scarcity in LTC. Consequently, the annual inflation rate has witnessed a sharp reduction, dropping from 2.21 to 0.6.
This decrease implies a growing scarcity of the altcoin, rendering it more appealing to investors as reduced supply propels its value upwards.
Lastly, Litecoin’s MVRV ratio indicates that the altcoin is currently in an accumulation phase, where long-term holders are purchasing the asset at lower prices.
With an MVRV ratio of 0.47, it suggests that LTC is undervalued at present and offers a buying opportunity.