Litecoin prices climbed past $300 today, breaking through this key psychological level and reaching a 2018 high after the digital currency enjoyed a robust increase in transaction volume.
The price of Litecoin rose to as much as $323.12, according to CoinMarketCap.
At this level, the digital currency was up more than 27% over the last 24 hours, additional CoinMarketCap figures show.
Before breaking through $300 today, the last time Litecoin traded above this key, psychological price level was December 24.
Litecoin Transaction Volume
The total volume of Litecoin transactions has risen significantly as of late, reaching an all-time high of more than 225,000 on January 4, according to BitInfoCharts.
This most recent figure represented a nearly 400% increase over the roughly 45,700 Litecoin transactions that took place one month earlier, additional BitInfoCharts data reveals.
Litecoin creator Charlie Lee mentioned the sharp increase in transaction activity, Tweeting about it on January 5.
Impact On Price
More than one analyst emphasized the importance of this higher transaction volume, with Oliver Isaacs, cryptocurrency investor and influencer, noting that this development helped provide tailwinds for Litecoin's price.
Nick Shetler, a digital currency trader, agreed that the notable increase in transaction volume fueled the digital currency's recent rise.
Litecoin Comes Into Its Own
It is worth noting that while Litecoin has frequently been described as following Bitcoin higher, the former currency managed to break out on its own this time.
At the time of report, Litecoin was up more than 17% over the last 24 hours, while Bitcoin had risen only 2%, CoinMarketCap figures show.
Litecoin may be coming into its own, as the digital currency continues to make upgrades while Bitcoin struggles to improve its technology.