Litecoin Losing Spot but Hopeful
Litecoin (LTC) is gradually becoming the latest digital asset among the top ten by market cap on the verge of relegation despite the glimpse of hope in its capability to bounce back.
In recent weeks, the Charlie Lee-led cryptocurrency has gone a spot or two lower going by the current rankings of the two main crypto data aggregators, CoinMarketCap and CoinGecko respectively, which both show slightly different figures for some coins.
Most of the top 10 coins have followed a mostly downward trend in the last three months. LTC following suit is not unusual but for the two aggregators recognizing a new entrant, Cardano (ADA), which has been rising on the list – currently in the seventh/ninth position while LTC is seventh/eight depending on the reported market cap followed.
ADA has been moving upwards slowly of late, pushing further into the top 10 ranking which some say is a sign of its market maturing particularly as most of the coins it trails have not shown much progress in recent months.
Whereas, before now, LTC had maintained a spot among the top five for years with a legitimate status as one of the coins with potential for real adoption following its connectedness to Bitcoin (BTC), its credibility and the community it has built over the years.
As a Bitcoin fork with 2.5-minute blocks instead of 10-minutes blocks (like Bitcoin) and a different hashing algorithm, LTC has always been considered preferable as more useful than BTC for transactions as it’s cheaper and faster.
It could be argued that with Ethereum (ETH) in the picture, LTC may not be needed to the point it could climb back to its previous spot in the top five. Also, its plunge down to about 90% of its all-time high of about $360 could be presented as a case against its ability to hold up against pressure – though the same could be said for the likes of ETH which has been down by almost 85% and there is no proof that an ATH is a proper metric to determine that Litecoin’s technology and its adoption equate its market value.
June Progress Update:
Minimal implementation of the mempool coded. Mining logic has been written for including extension blocks. Mimblewimble transactions can now be broadcast to peers.
Everything is still on track for a mid-September testnet.
— David Burkett ツ (@DavidBurkett38) July 1, 2020
Aside from its utility and cheap transaction fees, the pending implementation of the MimbleWimble (MW) on the Litecoin network could be a sure use case to give LTC a glimmer of a comeback hope. MW is expected to bring fungibility to the network as the only property of sound money that is missing from Bitcoin and Litecoin at the moment.
There are indications that the proposed mid-September testnet of activation logic and testnet launch is still on track.
Adding support for sharing MW transactions over the P2P network is the first step toward July’s goal of handling MW data as part of the Initial Block Download, a developer states, while the August schedule for the high-level plan for the rest of the summer – Chain reorg logic – remains the same.
Are you familiar with #Litecoin? Get familiar with our Building Blocks series $LTC, aimed to help investors of all levels better understand & compare and contrast digital assets based on their relative merits: https://t.co/pDOK77PSaE pic.twitter.com/WTINaWNzMI
— Grayscale (@GrayscaleInvest) July 1, 2020
Also coming positive for LTC is Grayscale Investment’s show of support for the so-called silver to Bitcoin’s gold.