Monthly data report: Litecoin mining difficulty and computing power both increase, miners' income continues to decrease

Preface

TokenGazer Cryptocurrency Data Monthly Report Description: This report is TokenGazer's continuous tracking of the project from various fundamental aspects. It is an important source of information for the "TG Index" and the factual basis for the TG valuation and deviation table. At important nodes of the project, the TokenGazer team will publish project research reports based on the monthly observation report, TG indicators and other references.

Users/Market

Note: By observing the user growth and market attention of Litecoin, the transaction status on the chain and other information, the development trend of the use value of Litecoin can be judged.

Google Litecoin search trends (2014-2019)

Litecoin Google search popularity peaked at the end of 2017, and has been low recently with no improvement.

Data source: https://trends.google.com/trends

Litcoin Google search popularity areas are mainly concentrated in Europe, North America and Australia.

Bitcoin on-chain transaction volume (24Hr)

Data source: coinmetrics.io

Recently, the 24-hour on-chain transaction volume of Litecoin is significantly lower than the peak in December 2017. In the past six months, affected by the bear market, the on-chain transaction volume has continued to decline. On November 30, 2018, the on-chain transaction volume of Litecoin suddenly surged to about 1.163 billion US dollars, but the price of Litecoin was not affected on that day. The on-chain transaction volume has declined recently, with a transaction amount of 65.7M US dollars.

Number of active addresses in 24 hours

Data source: coinmetrics.io

The number of active addresses of Litecoin has been decreasing overall and is currently only around 55.3K.

NVT

NVT is used to measure the relationship between Litecoin's market value and usage. When the market value growth is much higher than the usage growth, the amount corresponding to each unit of usage increases, which may enter the bubble zone. Otherwise, NVT decreases, which may enter the value return zone.

Data source: coinmetrics.io

Judging from Litecoin's 30-day NVT average, Litecoin's NVT value shows interval fluctuation characteristics, accompanied by a certain upward trend.

Miners/income

Note: "Miners/Supply" reflects the current Litecoin mining power, mining difficulty, mining income and other information.

Hashrate

Data source: https://bitcoinvisuals.com

In the context of weak market conditions throughout 2018, the Litecoin mining hashrate continued to rise and reached a peak in May 2018, and then slowly fell. Recently, the Litecoin hashrate has shown a continuous slight upward trend. Currently (February 18), the Litecoin hashrate is about 221T.

Mining Difficulty

Data source: https://bitinfocharts.com

The current mining difficulty of Litecoin has increased by about 1.6 times compared to a year ago.

Mining Profits

Data source: https://bitinfocharts.com

Litecoin mining profits continue to decline and remain low for a long time. With the price of the coin continuing to rise, a mining machine with a computing power of 1GHash/s can only earn $2.86 per day.

Trading/Market

Description: Market and trading observe the volatility, rate of return of assets, and correlation with other mainstream currencies and assets to provide investors with risk control information.

Transaction Fees

Data source: https://bitinfocharts.com

LTC's transaction fee is lower than BTC's transaction fee. In this regard, LTC has certain advantages. Lower transaction costs are one of the necessary conditions for becoming a payment token.

LTC ATM Distribution Areas

Data source: https://coinatmradar.com

Currently, LTC is used in many scenarios, among which the United States is more prominent.

Market performance

Data source: coinmetrics.io

There is a high correlation between LTC's price and trading volume changes. In 2018, when the market was weak, LTC's price gradually fell. Recently, driven by the market, the price has rebounded and the trading volume has also increased to a certain extent.

30-day rolling return volatility

Data source: https://coinmetrics.io

Return volatility reflects the price volatility and risk level of assets. The overall volatility of digital currency assets has declined compared to the beginning of 2018. Recently, the return volatility of LTC is around 6.1%.

Relevance

Data source: https://coinmetrics.io

Overall, the 90-day correlation between LTC and BTC was not high from 2017 to 2018, and LTC had independent trends in many periods. Since 2019, the correlation coefficient between LTC and BTC has been high and has remained above 0.8, indicating that the recent trend of LTC is roughly the same as that of BTC.

Overview

Litecoin's Google search index has been sluggish for a long time, and the number of active addresses has shown a continuous downward trend. The on-chain transaction volume has rebounded slightly, but the number of users and the degree of attention have not improved in the short term. In addition, Litecoin's NVT value shows an interval fluctuation feature, and has an upward trend recently. Investors need to be cautious of the corresponding investment risks.

LTC's transaction fee is lower than BTC's transaction fee. In this regard, LTC has certain advantages. Lower transaction costs are one of the necessary conditions for becoming a payment token.

In the past year, the mining power and mining difficulty of Litecoin have shown a high positive correlation, and both peaked at the end of May 2018, and then gradually declined, with a trend of recovery in the past month. Although the mining income has reached the lowest point in a year, the computing power has not continued to decline, indicating that there are still miners actively planning in the bear market.

In 2018, when the market was weak, the price of LTC gradually fell, but recently driven by the market, the price and trading volume have rebounded. The 90-day correlation between LTC and BTC has fluctuated greatly since 2014, with independent trends in many periods, but since January 2018, the correlation with Bitcoin has continued to rise, and has recently been close to 90%, which means that the short-term trend of LTC will be greatly affected by BTC.

Although Litecoin's performance in 2018 was not satisfactory due to the market environment, the team has recently released a lot of positive news, driving the overall cryptocurrency market upward: According to bitcoinexchangeguide, Litecoin founder Charlie Lee has confirmed through Twitter that his team has been discussing the MimbleWimble protocol with Beam and the idea of ​​using it on Litecoin. Once realized, it will bring more expansion to Litecoin. Litecoin has always been promoted as a small payment. If it is combined with a high degree of anonymity, it will increase its application in the dark web. In addition, according to the plan, Litecoin is expected to usher in a halving of production on August 8, 2019. The halving expectation drives market sentiment and may have a certain positive impact on Litecoin prices.

Investment Risk Tips

Price volatility: In the past, digital currency assets have experienced both daily and long-term price fluctuations.

Market Acceptance: Digital Assets may never achieve widespread market adoption, in which case one or more Digital Assets may lose a substantial portion of their value.

Government regulations: The regulatory framework for digital assets is still unclear, and the supervision and restrictions of existing applications by competent authorities may have a significant impact on the value of digital assets.