Is Litecoin still living up to expectations a decade later?

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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.

Startling growth

Just like any other “newbie” in the space, Litecoin too struggled to garner traction during its initial years. After remaining under the 10 million mark for more than five years after its inception, the total number of addresses witnessed a notable five-fold increase in the 2018-21 period.

Curiously, the same was just shy of 100 million at the time of writing. The recent steep spike has quite evidently been a testament to Litecoin’s consistent and organic growth.

Further, the coin’s key lifespan metric – the dormancy, highlighted that overall accumulation trend was still in play. The average coin dormancy, as such, describes the average number of days that each coin remained unmoved.

This indicator has been at fairly moderate levels of late, implying that the spent/realized destruction, relative to transactions, is under check.

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Litecoin’s profitability aspect has additionally been improving with time. As depicted in ITB’s chart attached, more than 70% of the HODLers were currently “in the money.” Conversely, this meant that the remaining 30% were either in loss or in a break-even position. Given the current state of the market, these numbers seem to be fairly decent.

As far as the broader trend is concerned, during every bullish phase of the market, LTC has fetched its investors substantial returns and during periods of downtrend, it has had valuation haircuts as well. In short, throughout the ten years, the market’s rising tide has more often than not lifted Litecoin’s boat and vice-versa.

Source: IntoTheBlock

The only question-mark

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.

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Next, relatively “old” protocols typically require time to develop and adapt to any changing ecosystem. At this point, Litecoin is just in need of some space. Notably, SegWit on Litecoin took time to become a reality and so did its first cross-chain swap or any other development. Thus, it is no more a question of if, but when Mimblewimble, smart contracts and NFTs fully go live.

Considering the proposed developments in the pipeline, it would not be incorrect to say that Litecoin is ageing 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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