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Litecoin Price Jumps 8% in Tentative Market Recovery

Benson Toti

Litecoin saw a fast 8% price upswing in the markets earlier this week. This is leading to many LTC watchers to wonder if Litecoin could be headed to the moon in the near future, or whether this is just another false start before another extended decline.

While we respect what Litecoin LTC has been to the crypto universe, we’re not optimistic about its long-term place in the markets. Though Charlie Lee still talks a big game, we just don’t think Litecoin has what it takes to endure. Here’s why.

Litecoin’s Fundamentals Don’t Justify its Recent Recovery

Litecoin LTC price recovery

Caption: Litecoin has potential, but it also has cons that haven’t been addressed thus far.
“Litecoin Wallet and Spending” – Descryptive.com via Flickr (CC BY-SA 2.0)

Litecoin’s problems are several. Firstly, Litecoin is old. While this is not an indicator of quality in itself, there are very few crypto projects from 2011 (when Litecoin was founded) that are still operational today. It takes hard work to stay up to date, as newer and more innovative technologies are constantly entering the space. So, has Litecoin managed to do this?

For a while, perhaps. But no longer. When we take a look at Litecoin’s Github page, we see that there has not been a commit since October 21, 2018 (and that was only one). Compare this to Bitcoin, which has between 10 and 50 commits every day (!), and we realise that as far as ongoing development goes, Litecoin is an arguably dead project.

Without development, Litecoin is forced to survive on technology achievements made well in the past. But are these old iterations of Litecoin enough to compete in today’s market? Not really. Litecoin served a great purpose for many years – as a sandbox for Bitcoin development, and as a fast and cheap transaction solution when Bitcoin was congested.

Now that Bitcoin is faster and other crypto payment and investment options like Ripple XRP are performing so well, there’s no fundamental reason why anyone would need to use Litecoin in particular instead of one of its competitors.

Litecoin remains prominent in kingmaker exchange platforms, as we’ve noted in our Coinbase review and our eToro review. When people enter the market for the first time, they see Litecoin available for them to purchase, sometimes among very limited company. This may be the single biggest factor in Litecoin’s staying power, but it won’t be enough to preserve it for years (months? weeks?) to come.

We expect the market to slowly come to the realisation that Litecoin is a dinosaur, doing nothing to evolve for the needs of the future. It still performs well in its own right, but this is largely due to the fact that the network isn’t overwhelmed with users. We have nothing against Litecoin, but it’s time to call a spade a spade. Any price recovery for LTC is based on overall market trends, not merit in Litecoin’s fundamentals or technology.
None of the information in this article should be considered to be investment advice.

Featured image: Marco Verch via Flickr (CC BY-SA 2.0)


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