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Litecoin Bullish Speculation as Upgrade Approaches

The litecoin cryptocurrency is frequently referred to as the silver to bitcoin's gold.

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The litecoin cryptocurrency is frequently referred to as the silver to bitcoin’s gold. Litecoin investors would have been better off sticking with the analog world this year: While bitcoin has outperformed gold by a factor of two, litecoin has barely caught up with silver.

Investors believe in LTC rising

With a critical update imminent and indicators that activity on the blockchain network is rising, some investors believe litecoin prices will rise.

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The upgrade will implement Mimblewimble, a “privacy protocol” designed to protect the identities of senders and receivers of litecoin tokens. Moreover, simultaneously enhancing the network’s capacity to grow to accommodate more transactions. Mimblewimble’s testnet, is set to launch at the end of September.

According to market statistics, the imminent inclusion is causing excitement among users. According to statistics provider Glassnode, daily verified transactions on the litecoin blockchain have more than quadrupled this year. It is hitting a seven-day average of 48,948 last week, the most since February 2018. Litecoin proponents believe that the Mimblewimble upgrade’s new privacy capabilities would help attract users. The users might otherwise gravitate toward existing privacy currencies like monero (XMR) and zcash (ZEC). These tokens come with their own set of hazards, such as the possibility of future issuance diluting existing holders’ holdings.

The improvement is thought to enable litecoin, which increased by around 50% to $63 this year, to catch up to bitcoin’s 64 percent surge.

“The impending Mimblewimble update for Litecoin has resulted in a rise in transactions and active addresses,” Matthew Dibb stated. Dibb is the co-founder of Stack, a cryptocurrency tracker, and index futures supplier, stated.

According to Nicholas Pelecanos, Litecoin’s capacity to handle a high number of transactions at any same time should improve with the upgrade. This must address “scalability” issues that have discouraged some users and investors. Pelecanos is the head of trading at NEM Ventures, a cryptocurrency investment business.

“Scaling was a big hurdle for advancement in the blockchain field in 2017,” Pelecanos added. “With protocol changes forthcoming across the bulk of prominent protocols, the issue will now have a resolution, leaving values at lifetime highs.”

LTC prossesing: believed to improve overtime

The processing speed of the litecoin network has doubled this year, reaching around one transaction every two seconds. But that’s still a long time compared to the Bitcoin blockchain. It can process 3.7 transactions per second. The future protocol improvement may increase transaction capacity even further.

One issue with the new privacy features is that it’s unclear how regulators will receive them. Last year, Coinbase UK delisted zcash, presumably owing to regulatory pressure. In 2019, Upbit, a South Korean exchange, delisted the privacy currencies monero, dash, and zcash.

In a recent interview with CoinDesk, Litecoin inventor Charlie Lee said, “There’s some stigma around privacy currencies, and some exchanges have delisted them.” “However, from what I’ve seen, the exchanges seem to be fine with this litecoin privacy enhancement as an extension block because it’s on the side.” The extension block side of things does not require cooperation from the exchanges.”

On Twitter earlier this month, David Schwartz stated that he believes in the undervalued cryptocurrency. Schwartz is a project director at the Litecoin Foundation, a non-profit organization that supports blockchain development.

He tweeted, “Its average usage has doubled since the start of the latest bull run and is gaining momentum.” “To the point that transactions have exceeded historical pricing, implying that price does not reflect genuine value.”

Of course, there is some skepticism. Cryptocurrency markets are infamous for being very speculative.

“The current increase might be due to the imminent upgrade” – Connor Abendschein

Connor Acendshein is a research analyst at Digital Assets Data. According to him, “more optimistic attitude throughout the whole crypto market has driven prices of most assets up over the previous several months.”

“As the upgrade approaches, we’ll see if litecoin can find some legs and go on its own,” Abendschein added.

“The views and opinions on this Crypto News Website are solely those of the authors and contributors. These views and opinions do not necessarily represent those of iBaseTrading or its partners.”

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Angela Lopez stepped into the Cryptocurrency world after her Journalism career and hasn't looked back since, writing about anything crypto-related. She started working with iBasetrading in October 2011.