Transactions on Litecoin have surged to an all time high as Bitcoin fees soar amid the BRC-20 frenzy. According to data from BitInfoCharts, Litecoin executed 525,000 transactions on May 8, even coming close to Bitcoin’s 575,000 transactions. The number of transactions that Litecoin executed is 5 times higher than the daily average of 2023 and double the previous record high set in January 2018.
Data from Glassnode showed that the number of active wallets on Litecoin also set a new record of 718,000 wallets on May 8, with 500,000 new wallets created recently.
The reason comes from the fact that the Bitcoin network is being overloaded by BRC-20 token transactions, pushing Bitcoin fees to an all time high. Litecoin is an alternative to Bitcoin because its technical properties are quite similar to the world’s largest cryptocurrency, but with lower fees.
BRC-20 tokens are a new type of cryptocurrency that can be created and traded on the Bitcoin blockchain. They are inspired by the ERC-20 standard on Ethereum, but they use a different protocol called Ordinals to inscribe data on satoshis, the smallest unit of Bitcoin.
Bitcoin does not support smart contracts or advanced programming functions, the issuance and trading of BRC-20 tokens so far is still limited, but because of the current BRC-20 craze, the total capitalization of BRC-20 tokens has reached $1 billion after only 2 months of launch.
Since the spike in demand for the Bitcoin network, Bitcoin fees have skyrocketed. Binance earlier this week even blocked bitcoin withdrawals twice due to a congestion issue. LTC price, meanwhile, has shown no positive sign despite the fact that the Litecoin halving event is only about 90 days away.