Known as Bitcoin’s silver to gold, Litecoin has lost much of its relevance in recent years.
Litecoin is one of the most trusted cryptocurrencies in the industry. The code is an identical copy of Bitcoin, so there’s no argument about it. However, trust does not necessarily mean staying relevant. It is a fact that in the last two years, other altcoins have occupied the space and established their participation as the best form of alternative investment.
Cardano rose 10 times on the chart. Chainlink and Polkadot are bringing more functionality and innovation to the space, and several DeFi assets have made headlines.
For Litecoin, its previous proficiency has carried weight in recent years, but is it likely that the same narrative will continue to advance?
2018-2021: Litecoin in its two-high period
LTC / USDT in tradingview
2021 was a good year for Litecoin, as it was for the rest of altcoins. It rose 197% at once, surpassing its all-time high. However, the image has not changed in the last 3 years. Bitcoin and Ethereum, respectively, violated their previous 2017-2018 ATH levels and continued to remain comfortably above that level after the recent drop. However, the present value of Litecoin is the same as in April 2018.
One of the main reasons for this is the increased competition from other assets. Chainlink, Cardano, Polkadot – their projects have risen in the market, bringing a different kind of cryptocurrencies, with a defined objective in space. With LTC it’s the same old story: an alternative to Bitcoin, cheaper than BTC and faster in comparison.
Its ecosystem simply did not indicate any difference or substantial growth. And now, on the fundamentals side, there are also signs of weakness.
‘On-Chain’ is not Rolling Smooth
Now, if all addresses that contain Litecoin are considered, the profitability of those addresses is still above 50%, but the network metrics are no more impressive than that.
Both the number of active addresses and the number of transactions did not increase in terms of activity until this year’s breakout. It’s important to note that cryptocurrencies like BTC and ETH also haven’t covered the drastic distance between 2018 and now, but have been able to maintain the highest levels over the past two years.
Litecoin is just setting similar highs again, but the recent slump has pushed it back to mediocre engagement once again. There is only sporadic interest in the asset and it is possibly surviving due to its legacy currency tag.
Github development data
Source: Github | Data Aggregation Chart: AMBCrypto
Github’s development rate was also dismal. Github repositories indicate the number of active projects for builds or fixes for a given blockchain project. As stated, some of the top assets in the top 20 have a good number of developers actively participating in the improvements. For Litecoin, the statistics are a bit embarrassing.
‘I will Survive…’
It’s what Litecoin has been talking about for the past few years. Its resemblance to Bitcoin and past adoption continues to bring high transaction volumes to the asset. Now, the jury is deciding whether LTC can survive a few more years in the industry.