• Is Litecoin still living up to expectations a decade later?

  • Following the launch of Bitcoin in 2009, a slew of new cryptocurrencies emerged, including Namecoin, Ixcoin, Tenebrix, and Solidcoin. However, the majority of them vanished into thin air in no time.

    Litecoin, on the other hand, is one of the few coins that has survived. In fact, “the silver to Bitcoin’s gold” is nearing the end of a decade in the space. After overcoming a slew of roadblocks, Litecoin appears to have found a home in the crypto-verse.

    Incredible expansion

    Litecoin, like any other “newcomer” in the space, struggled to gain traction in its early years. After remaining under 10 million for more than five years after its inception, the total number of addresses increased by a factor of five in the 2018-21 period.

    Surprisingly, at the time of writing, the figure was just shy of 100 million. The recent sharp increase is clearly evidence of Litecoin’s consistent and organic growth.

    Furthermore, the coin’s key lifespan metric – dormancy – indicated that the overall accumulation trend was still in effect. As such, the average coin dormancy describes the average number of days that each coin remained motionless.

    This indicator has recently been fairly moderate, implying that the spent/realized destruction, relative to transactions, is under control.

    The profitability of Litecoin has also been improving over time. According to the attached ITB chart, more than 70% of HODLers are currently “in the money.” In contrast, this meant that the remaining 30% were either losing money or breaking even. Given the current state of the market, these figures appear to be reasonable.

    In terms of the broader trend, LTC has provided substantial returns to its investors during every bullish phase of the market, and it has also provided valuation haircuts during periods of downtrend. In short, over the last ten years, the rising tide of the market has more often than not lifted Litecoin’s boat, and vice versa.

    The only ambiguity

    Even though the coin has performed well on the aforementioned fronts, some members of the community believe that the developmental aspect has been neglected since its inception. In effect, constant taunts about non-utility and redundancy have always surrounded the coin. So, are these labels justified?

    No, for the most part. To begin with, it should not be forgotten that LTC has successfully sailed through all of these years with “expectation baggage” on its shoulder. In fact, it has rarely complained about the same.

    Next, relatively “old” protocols typically require time to develop and adapt to any changing ecosystem. At the moment, Litecoin simply requires some breathing room. Notably, SegWit on Litecoin, as well as its first cross-chain swap or any other development, took time to become a reality. As a result, it is no longer a question of if, but of when Mimblewimble, smart contracts, and NFTs will be fully operational.

    Considering the proposed developments in the pipeline, it would not be incorrect to say that Litecoin is aging like fine wine. The network would become more relevant than ever after the aforementioned upgrades, tweaks, and additions.

    If the growth pattern continues to be consistent in the near future, LTC will be able to break free from the shackles of the broader market trend and surprise its HODLers by initiating independent rallies.

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