It’s been reported that both Litecoin and Dogecoin have seen some huge spikes in transaction volume today. Of course, it’s not uncommon for the two to be correlated since Dogecoin is mined alongside Litecoin. The transaction levels recorded earlier today for both of these cryptocurrencies are the highest seen since the 2018 cryptocurrency boom and since the transaction volume heights of February 2018.
According to Cryptovest:
“Over 24 hours, the Litecoin network carried more than 77,000 transactions, way above the typical levels of 25,000 to 30,000. Meanwhile, DogeCoin reached more than 65,000 transactions in 24 hours. This is the second highest number since March 2018, when DOGE transactions exceeded 74,000 in 24 hours. In the past few days, DOGE has doubled its market price, and the renewed interest spurred the movement of coins.”
At the time of writing, Dogecoin is valued at $0.0051, down 3.05%. Likewise, at the time of writing Litecoin is valued at $68.31, up 5.18%. With these figures in mind, it’s clear that the transaction volumes of Litecoin and Dogecoin haven’t had an impact on values, as the pair would no doubt be moving in the same direction otherwise.
Of course though, high transaction volumes do not necessarily mean high prices:
“Transaction levels are not always a reliable indicator of price performance, but peak activity often coincides with high market values. However, the activity for coins and tokens cannot be compared as some networks habitually carry many small transactions while others, like Bitcoin, carry few transactions with a higher value. Despite the level of transactions, LTC prices have remained stuck in the range of about $60 to $65 in the past few days, as per Coinmarketcap data. The value has also dropped below the 0.01 BTC range that LTC managed to achieve in the past year. Trading volumes have stabilized around the equivalent of $250 million in 24 hours. More than 35% of LTC trading is against Tether (USDT).”
We could be about to see a big boost in Litecoin interest that could actually be spurred on by an interest in Dogecoin. Or perhaps this is just a blip and normal service will resume tomorrow. For now, we’ll have to wait and see.