Where Things Stand With LitecoinFebruary 15, 2022 9:38 am
Litecoin has been a long time name in the crypto industry as it was one of the first blockchains to be released after Bitcoin in the early days of crypto.
So far, the coin has struggled to remain in the spotlight despite still holding the 20th largest market capitalization according to CoinMarketCap with a total value of $8.7 billion.
This is a stark contrast from its peak back in November where it had a total valuation of about $19 billion which represents a 45% decline in the past few months.
As a result, some investors have been losing confidence in the long-term outlook and wonder what Litecoin will do in the future to regain its credibility.
So far, Litecoin seems to be highly correlated with Bitcoin and has been referred to as digital silver.
Starting this year, these may be some progress as far as Litecoin upgrades go that could eventually regain its status.
— PipPost (@pip_post) February 14, 2022
Since the beginning of the year, Litecoin has slowly been making progress in creating new partnerships and implementing upgrades.
For example, on Jan. 31, the Litecoin Foundation announced a “pivotal new upgrade” called Mimblewimble was launched.
According to CoinTelegraph online magazine, this upgrade allows privacy-oriented transactions on the network.
For example, every transaction on the crypto blockchain is open to all investors and viewers to see. This new upgrade will allow certain transactions to be kept private yet still be verified as valid to each end user in the transaction.
The Mimblewimble Extension Block, also known as MWEB, allows users to opt-in as needed to conduct confidential transactions. That way large amounts of money can be transferred and kept secret.
The Foundation believes that having this key MWEB technology will allow Litecoin to be considered “sound money” in the long run. This increases its appeal as a transactional currency, store of value and for use by many more merchants.
With that being said, there is still opposition against the idea of privacy coins as many government agencies are wary about criminals using it to do money laundering and other illicit activities.
The crypto obfuscation is often contrasted with the decentralized and transparent nature of many other blockchains.
The way Litecoin has so far got around this opposition is by making the privacy features opt-in so only those who want their transactions hidden can do so, but are not required to.
So far, this seems to have Litecoin maintain its popularity still and appeal to a wide range of crypto audiences about its utility.
Still, investors are wary that Litecoin is still highly correlated with Bitcoin when it comes to price.
Nevertheless, Litecoin still has a 90% correlation with Bitcoin, according to Coinmarketcap’s stat page on LTC crypto.
Investopedia says that the rise and fall correlation with Bitcoin is clearly due to Litecoin’s founders’ choice for this to continue.
So, the bottom line still seems to be as goes Bitcoin, so will Litecoin, at least for the foreseeable near term. Clearly, we are in an extended “winter” period for both currencies.
But over time, once blue skies appear, expect to see LTC crypto make a significant rebound as it tags along with Bitcoin.
At the time of writing, Litecoin is price at $125 and has been in decline in correlation to the broader crypto market since the start of the year.
Merchants: If your business has a @Verifone device you can accept Litecoin!!
— Litecoin (@litecoin) February 8, 2022
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