The rate of development within the crypto space has been exemplary since the beginning of 2018. One of the new protocols to be launched earlier in the year was ‘Lightning network’, meant to solve Bitcoin’s inefficiencies. Litecoin (LTC) ventured into this space and built its own ‘Lightning network’ that is more efficient and crypto friendly!
Bitcoin has in the recent past proven inability to handle transactions as efficiently as expected. With Lightning network, the cryptocurrency can now breathe easy since the infrastructure allows P2P transactions independently. What this simply means is the transactions do not have to be on the Bitcoin network and instead processed individually to increase tps and lower costs.
Litecoin and the Lightning network feasibility prospects
According to a tweet from its founder, Charlie Lee, Litecoin is at a better position to use the Lightning Network:
“It will also be the easiest onramp onto the Lightning Network. BTC takes too long and fees [too] high? No problem. Open an LTC payment channel on chain cheaply and quickly, then atomically swap for BTC if/when you need to. This can be done in one step.”
Lightning Labs, a participant in the protocol development added an advanced feature to give users the chance to select more than one crypto coin. However, as of press date the feature is yet to be released on the mainnet. This is where Litecoin’s Lightning Network passes the test in comparison to peer networks since it has already been tested and is only a few polishes away for service provision.
At the moment, Litecoin enjoys popularity within the cryptocurrency market driven by the project’s fundamental value. When it comes to on-chain transactions, Litecoin provides one of the best rated transactions per second in addition to cost-cutting. Bitcoin has finally managed to solve some of its congestion related problems with Lightning Network, something most BTC HODLers expect to sustain the coin even after market correction. However, the issue now lies with how dependable the network can be in minimizing risks when transacting large quantities of Bitcoin.
The Lightning Network infrastructure had been a work in progress for a good number of years. It was during Q1 of 2018 that the development was finalized for the network launch. Sentiments within the crypto community however indicate that the launch was not as smooth as expected. To date the Lightning Network has not fully broken even in terms of adoption hence more reason to consider Litecoin’s which is far much better.
LTC Price Analysis
Speaking of fundamentals, Litecoin is amongst the top performers and has appeared in the top 10 gainers this week based on news influence. The milestones include getting listed on new platforms and interests from corporate investors, a potential new market that can push the bulls back to last year’s highs. However, the altcoin’s price action is yet to reflect this but analysts have often argued fundamentals will come before price change reactions.
The LTC coin is currently ranging although the last hour indicates a bearish trend. One thing that stands out within the analysis is the fact that the current $65 price is down by about 90% of the all-time high LTC price. Technical analysts and crypto traders have been expecting a reversal in trend since the market rally in Q4 of 2017; Litecoin might be a gold mine for its HODLers if such happens.
However, the probability of a strong bull to turn around the market dynamics remains highly uncertain. Litecoin (LTC) recently saw a huge improvement in its daily traded volumes although the candlesticks still signal an ongoing bearish trend. This is not to say the coin’s prospects will not be realized but might take a little bit longer, HODL!