Litecoin Foundation project manager proves that LTC’s network effect is the best

Litecoin turns 10 on October 7th. After a decade of operation, it’s still going strong. As a faster and lighter bitcoin fork, Litecoin has always aimed to become silver alongside the title of digital gold from BTC. And in this year of insanely high transaction fees, Litecoin may have proven itself. For many, LTC has become the tool of choice for sending money without paying an exorbitant fee.

Data Compiled by the Twitter master account shows that the number of Litecoin transactions corresponds to 75% of the Bitcoin transactions.

“Litecoin transactions make up 75% of all Bitcoin transactions. When will Litecoin transactions overtake Bitcoin? I forecast 2021. 227,000 BTC transactions versus 168,000 LTC transactions. “

Number of Bitcoin and Litecoin transactions | Source: Master

In particular, Master suggests that this could just be the start of an uptrend that has resulted in a position change in terms of trading volume this year.

Given the current situation, the likelihood is less, but it is certainly an interesting development worth investigating further. As David Schwartz, the project manager of the Litecoin Foundation, just presented the proof that “network effect + condition has increased in the last 10 years”.

Litecoin transactions are faster and cheaper

This is by design. Cheaper and faster transactions are the reason Litecoin was born. However, it is worth noting that this property appears to be changing.

David Schwartz said:

“If you look at the volume versus the average, you can see how the LTC changes. From primarily a method of transferring BTC at peak times to one of the more common uses of transactions / payment methods. The average value per transaction on May 13, 2021 was $ 160.43 and exceeded $ 28 billion in transactions on the same day. “

Litecoin total and average trading volume | Source: David Schwartz

Litecoin has a decade of notoriety and shows resilience as well as adaptability. While no blockchain is as busy as Bitcoin, the Litecoin blockchain is anything but “a ghost town”. It’s bursting with activity and ready to trade. Liquidity has also been proven in the market. Litecoin is essentially a new but abundant asset.

Back to the transformation, we can see here that “the number of transactions is above average and growing exponentially in each cycle”. Does this mean that Litecoin will become a payment instrument?

#Litecoin is 1 of only 4 #Cryptos on Venmo & PayPal & 2nd only to #BTC in # of crypto ATM sites around the world.

It also shows a comparable growth rate in total new and non-zero addresses with both #Bitcoin & #Ether without most of the marketing and news broadcasts these two receive.

5 / pic.twitter.com/tmnNp0X5Wz

– David Schwartz (alias – Dasch) (@ DaddyCool1991) July 5, 2021

“Litecoin is one of only 4 cryptos on Venmo & PayPal and the second coin outside of BTC with crypto ATMs worldwide. It also exhibits a growth rate comparable to both Bitcoin and ETH, due to the total number of addresses, new addresses, and non-zero addresses without as much news and marketing as the two leading cryptocurrencies.

Is LTC Undervalued?

Obviously, David Schwartz has some interest in Litecoin. What he presented, however, was grounded. A 10 year old coin with new use cases is not commonplace.

“LTC has been added to many financial instruments and global portfolios, with Grayscale’s Litecoin Trust being one of the best known. However, the market cap has lagged behind BTC and ETH, but still tops the ~ $ 16 billion high in 2017 and adds another $ 7 billion in 2021, “the project manager said.

Market capitalization of BTC, ETH, LTC | Source: David Schwartz

In addition, Litecoin also has a halving and a fixed offer. In addition, the number of transactions is steadily increasing.

Better still, LTC also benefits from developments by the Bitcoin developers. Accordingly, they will need fewer full-time developers, if not required, and less Github activity.

By not vying for Bitcoin’s place and always knowing its place, Litecoin benefits from all the incredible developments that the Bitcoin community has to offer the world. Bypassing the Bitcoin chain is best, and Litecoin is a direct beneficiary of it.

People often say Litecoin is redundant, but if Schwartz is right, the coin may have found its way in a decade. The question now is whether the new status as a commodity will affect the price of LTC.

Minh Anh

According to Newsbtc

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