Cryptocurrencies are experiencing a surge in demand and price formation, driven by benefits measured by various metrics such as network activity and Daily Active Addresses (DAA). A recent study by Santiment’s crypto dashboard on December 23rd revealed the top five cryptocurrencies leading in network activity, suggesting potential investment opportunities in January.
Bitcoin (BTC) unsurprisingly tops the list with 911,120 daily active addresses over the last 30 days, demonstrating its market dominance with an impressive market value of $857.17 billion. Unexpectedly, Litecoin (LTC) surpassed giants like Ethereum, securing second place with 638,820 daily active addresses, showcasing 70% of Bitcoin’s network activity while commanding only 0.62% of BTC’s capital at $5.34 billion.
Ethereum (ETH) confirmed its position as the second-largest cryptocurrency by market value, taking third place with 428,330 daily active addresses. The fourth and fifth spots were claimed by altcoins Polygon (MATIC) and Dogecoin (DOGE), recording 217,190 and 137,770 daily active addresses respectively last month.
Interestingly, Litecoin exhibits the highest asymmetry in valuation among the top five cryptocurrencies when considering network activity. This highlights the role of network activities in price increases and the potential opportunities they may create, leading to speculation.
Currently trading at $72.08 per coin, Litecoin has recorded a modest 3% increase since the beginning of the year. In contrast, many cryptocurrencies with lower network activity have seen significant gains exceeding 100% in 2023.
Moreover, Litecoin’s daily address activity tends to rise during increases in Bitcoin transaction fees. Despite Bitcoin’s transaction costs exceeding the global daily average income per person of $26, its sustained network activity dominance underscores its resilience and leadership in the crypto space.
