It's Thanksgiving. A time to celebrate with family and friends and to give thanks.
Today, I am sure the conversation about Bitcoin and Litecoin will come up and many new people will be interested. I have put together two charts that show Litecoin's potential fair value using its network adoption rates and usage for litecoin priced in dollars and priced in bitcoin. Feel free to take a look at them and share them. Let me know what you think.
The first one is litecoin's current price in yellow, overlaid with Litecoin's network data compared to Bitcoin. The large gap show's that litecoin is currently undervalued compared to its network utility. In other words, Litecoin's network usage is increasing faster compared to Bitcoins network usage. Litecoin's faster adoption growth is in terms of new addresses, transactions, and active addresses. The ratio of Litecoin's network growth compared to Bitcoin's has historically correlated to Litecoin's price. However, since 2020 there has been a divergence in price.
See the live chart here:
The second one is litecoin's price against bitcoin in yellow, overlaid with litecoin's network data compared to bitcoin. The large gap show's that litecoin is currently undervalued compared to its network utility. In other words, litecoin's network usage is increasing faster compared to bitcoins network usage. This is in terms of new addresses, transactions, and active addresses and shows similar results to the above chart.
See live chart here: