Litecoin’s battle for relevance has only gotten worse
Every altcoin is somewhat struggling in the industry at the moment. Litecoin was no different but the once elusive crypto is slowly becoming redundant in the space.
Source: Twitter
Market analytics still indicated positive sentiment though. According to Santiment’s recent data, Litcoin is actually displaying a 3-month high in terms of address activity divergence with its current price levels. Over the past, Litecoin has commonly been known to lead Bitcoin into these bullish rallies as LTC is currently 131 percent above its mean expected levels.
In spite of these positives, there is no arguing that Litecoin is fighting for its life to stay above in the top cryptocurrency list, and mostly to stay relevant.
A bit of an unpopular opinion to start with since Litecoin is a fairly well-known asset but its popularity is somewhat reaching the end of its wick.
Price Activity or Should I say ‘Lack of’?
Source: LTC/USD on Trading View
On observing the weekly chart of Litecoin, its price movement has been extremely disappointing over the past year. The asset did not or could not take advantage of any of the bullish rallies in 2020 and its high during 2019 is still dominant. While the likes of Bitcoin, Ethereum consolidating higher with the latter clocking in a new ATH in the two year period, Litecoin seems to have forgotten that price performance is the foremost important factor to attract investors or traders. Ask Chainlink and Polkadot.
Without raising a comparison between Litecoin and these new altcoin projects (LTC is definitely more dependable and safe), it is important to note that innovation wise, these projects will slowly take a step forward as well.
For Litecoin, the last important development with its privacy protocol MimbleWimble came back on May 4th, 2020. After the developer revealed the LTC is undergoing codebase integration, it did little to excite the digital asset industry.
Now, recently the Litecoin foundation revealed that the testnet launch for MimbleWimble is on track for later this month but it might do little to nothing to improve Litecoin’s position in the market.
One other major announcement with regards to Litecoin came a few weeks back with regards to Grayscale’s Litecoin trust going public. It was indicated back then to trade at a fat premium of 750% but our recent article explained, that higher premiums on Grayscale hardly meant anything, let alone higher institutional interest for the asset.
2021; a formal exit from the top 10?
To be fair, Litecoin works. The code is practically a copy of Bitcoin so there is no doubt with regards to its functionality but the digital asset industry is getting incredibly competitive with every passing day. Hence, if Litecoin is unable to perform in terms of price, other assets (they already are) will jump in front of the silver counterpart of Bitcoin, once positioned in the top 4 digital assets of the world.
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Biraajmaan Tamuly, Khareem Sudlow