Litecoin catching Bitcoin in transaction volume and value.

Since my last post in which I shared data about LTC’s real world usage and value, the price of Litecoin has doubled from ~$150 to $300USD. In that story I give some insight how to evaluate the number of transactions and the value to calculate Litecoin’s currently undervalued status.

One of the predictions I made is that in the following year we will begin to see news headlines of LTC performing better than some economies. Well it’s already beginning:

At the time of writing last week we saw that on avg. 15.8x as much value was being exchanged in total on the BTC network compared to LTC while Bitcoin was valued disproportionately at 100 times Litecoin. Where are we at now?

LTC transactions are increasing velocity

In relation to sheer transaction amounts we have gone from BTC having ~5.5x as many transactions to now ~3.5x. The numbers don’t lie. Litecoin usage is not just growing — it’s speeding up.

Litecoin value being exchanged also going parabolic

The average transaction value is now seeing less than 3x at 2.83. At the peak values so far in December just a few days ago, we can see LTC’s avg. transactions grew to half the size of Bitcoin.

In terms of working out overall value being exchanged (Number of transactions multiplied by the average value of transaction) we have gone from 15.8x the value sent on Bitcoin vs Litecoin down to only 9.8x. It’s significant growth, to say the least.

Again, if we took this real world usage as a way of deriving the value of LTC we are looking at LTC true value being ~.1BTC which is roughly 10x times more than what Litecoin is currently priced.

Are you seeing the trend here?

Litecoin is where Bitcoin was only a few months ago in usage

The average transaction on the Litecoin network is not coffees and micro payments on blogs. No, the avg. transaction on LTC is currently above $40k USD. That’s the equivalent of a Tesla Model III or 2 Bitcoin. Anybody know what the average Paypal transaction size is? Or avg. Visa, Mastercard transaction is?

To put it into perspective — earlier in the year Bitcoin’s average transaction value was under $40k in fact, it wasn’t until November this year that Bitcoin started to have average transactions more valuable than Litecoin’s current avg transaction value. Let that sink in.