Litecoin [LTC] miners turn profits, but is there trouble brewing?

ambcrypto.com:

Litecoin [LTC] has been among the top-performing cryptos in 2023, jumping by as much as 33% since the start of the year, data from CoinMarketCap revealed.

Read Litecoin’s [LTC] Price Prediction 2023-24

Because of the price surge, mining activity has picked up decisively on the network. As per Coinwarz, LTC’s hash rate was 765.12 TH/s at the time of writing, an increase of over 30% over the previous month. The network’s overall mining difficulty also rose in the same period.

Source: Coinwarz

A higher hashrate is a positive signal as it means that there are more miners on the network, thus making it more secure.

On 24 February, the Litecoin Foundation entered into a partnership with Metalpha to develop sustainable mining solutions. Litecoin stated that the partnership’s key areas of research will facilitate renewable energy use and lowering carbon emissions from mining on the network.

— Litecoin Foundation ⚡️ (@LTCFoundation) February 24, 2023

As mentioned earlier, higher hash rates are desirable. However, they can have negative impacts on the environment because of the increase in the amount of energy required for mining. This factor acts as a major scaling constraint for blockchains, due to which a lot of them shift to the proof-of-stake (PoS) algorithms.

Litecoin’s on-chain activity evoked little enthusiasm as the transaction volume declined by 31% over the previous month, though there were signs of uptick in the recent days.

The daily active