For Bitcoin, the days after Christmas 2020 are extraordinary. As of December 26, Bitcoin is up 40.74% on the price chart. It can be argued that the fact that the cryptocurrency surpassed the psychological resistance levels of $ 25k, $ 30k and climbed as high as $ 34.8K is testament to the strength in Bitcoin’s bull run.
However, along with Bitcoin, major altcoins like ETH, LTC, and BCH are also taking advantage of the market’s first rally.
ETH, LTC and BCH are thriving
According to Santiment, after Bitcoin hit $ 34.8k on the price chart, its rally started to reverse. In contrast, ETH spiked to $ 1169, before correcting. Here, it’s important to note that while other assets like LTC and BCH are also correcting, the correlation with BTC’s rally may also need to be considered.
LTC thrives, BCH rises: What’s going on? Although ETH may be added to the list of majorly correlated altcoins, ETH has held its own position in the market for some time now. Besides, LTC and BCH have been technically quiet for much of 2020, except for some updates only on MimbleWimble.
However, given the significant rise of other assets like LINK, DOT and YFI, it’s surprising to see them still slow compared to LTC and BCH, especially as older cryptocurrencies have been scrapped. past before.
Here, it can be argued that the above assumption gives BCH and LTC an unexpected advantage.
Historically, LTC and BCH have been part of the 2017 rally, a time when both assets hit all-time highs. However, at the time of writing, they weren’t even close to that range, making it the ideal alternative to investing in a bull market.
PayPal brings new spot traders
With so much attention now being placed on cryptocurrencies, it is also leading to prompting for spot investors to join the ecosystem. PayPal introduced the functionality to buy crypto assets on its platform and includes BTC, ETH, LTC, and BCH.
PayPal may be one of the most convenient and easiest ways to access digital assets at the moment but as we can see, the list is limited. However, new traders sometimes don’t understand the difference and they are more likely to put money in the types available on the platform.
Despite the technical shortcomings, the sense of identity is pretty clear for LTC and BCH. Hence, profits are flowing back to the traders and holders of them.
The final code for Litecoin’s MimbleWimble protocol will be ready by the first quarter of 2021, according to the project’s lead developer, David Burkett, who updated on the progress via the following tweet:
“The code will be ready and consolidated by Q1 / 2021. The activation process will be decided by the user and the miner ”.
Working code is available on Github
Burkett explained that the activation timeline will be determined by the Litecoin community as well as by LTC miners. He also revealed that MimbleWimble’s active code is already on Github.
“I first tried to design securely to support one-way Mimblewimble transactions in January. After almost a year and about a dozen design revisions after that, we finally have the code working!”
LTC increased by 211% in quarter 4/2020
In terms of price, LTC quietly showed an impressive increase in Q4 / 2020. On October 1, LTC was trading at $ 45. Also known as the ‘younger brother’ of Bitcoin, LTC continued to hit a one-year high of $ 140 on December 27. This impressive 211% price increase also helped LTC quickly follow XRP from the No. 4 position on Coinmarketcap.
Accordingly, this is achieved when XRP plunges to as low as $ 0.17 as exchanges like Coinbase, Bitstamp and Bittrex announce to halt this coin transfer next month.
LTC could provide an alternative for those who fear other altcoins are securities
At the time of writing, LTC is trading at $ 128.49 and has so far followed Bitcoin’s bullish momentum. The correlation between LTC and Bitcoin may be a reason for investors to consider LTC as they rebalance their holdings out of fear that some of their favorite altcoins will be viewed by the SEC as securities.
Traders and investors can also view LTC as the cheaper and faster version of Bitcoin as witnessed in 2017 and before LTC hit an all-time high of $ 375 on December 18 of the same year.
Furthermore, the addition of confidential transactions via MimbleWimble in 2021 could provide another reason for traders and investors to shift their focus to LTC.
Litecoin, the seventh largest cryptocurrency by market cap, has seen a steady increase in its value from the previous month. However, it is still down more than 46% since its 2020 high. It’s been 9 months since the second halving and its hash rate has dropped 60% since then.
When prices recover, so does the hash rate. It climbed to 205.21 TH / s on May 17, reaching ATH within the past six months. Along with its price action similarity, Litecoin has seen a growing hash rate, currently at 201.60 TH / s. Notably, its hashrate fell to a two-year low when it dropped to 127.9 TH / s on March 16 following the Black Thursday crash.
The latest uptrend of the ever increasing hash rate could have a positive impact on prices and also be a sign of the miner’s return.
Meanwhile, accompanied by the latest increase in hash rate, its difficulty also recorded a six-month high increase to 6,675 M. The mining difficulty value increased slightly in mid-January this year. when the coin price spikes. However, this trend was short-lived and then soon dropped.
On the other hand, Litecoin mining profits have not recovered. After the halving, the mining profit was also cut in half as the difficulty wasn’t adjusted immediately. While price volatility is the biggest determinant and a decline in mining profits is often offset by an increase in prices. However, Litecoin price has yet to gain the momentum needed to increase mining profits as it continues to hover near all-time lows.
Litecoin hash rate distribution
Poolin and F2Pool continue to lead with 44.9 TH/s and 34.4 TH/s in hashrate distribution, followed by mining pools like BTC.com with 22.7 TH/s and ViaBTC with 21.9 TH/s.
The MimbleWimble implementation on Litecoin has been underway for over a year now, with a number of updates shared by the team on its development. In a recent podcast, Charlie Lee, the creator of Litecoin shared his thoughts on the MimbleWimble protocol, while expanding the reasons why he decided to upgrade Litecoin’s privacy in the first place.
Lee asserted that Bitcoin and Litecoin are money that does not have a long-term downtrend or depreciation, supported by the self-regulation mechanisms inherent in a free market system, except for one. – both ignore “flexibility”. Note that privacy and flexibility can go hand in hand, and the implementation of MimbleWimble will help Litecoin solve this, Lee said:
“When I send Litecoin to you, you can see the transaction address, you can see the history, you can find out almost how much money I have, right? You have to be careful about not disclosing your finances to others and this makes it really difficult to use.
He added that this is something he wants to deal with with Litecoin, Bitcoin will need something like that later, to make it more fluid.
That said, these upgrades in coins like Bitcoin, Litecoin, and Ethereum could become a threat to privacy coins. While there could be delays in the implementation of evolving protocols like security-enhancing technologies like Taproot / Schnorr on Bitcoin, Ethereum, the upgrade to PoS and Litecoin with MimbleWimble, it all holds promise.
These developments have the potential to reduce their use of private coins, support their community and hinder their future development. Also, scalability is another challenge facing privacy coins, something that isn’t too difficult for other cryptocurrencies. Lee added:
“Private coins like Monero, Zcash and Dash have great privacy, but they don’t have that scale, do they? The block size becomes gigantic. Huge transaction ”.
On the other hand, private coins are no stranger to regulations. Private coin transactions have long discouraged financial institutions, all waiting to tighten regulations around them. Now, the question here is if the king of coin and other altcoins upgrade their security features then end up better than private coins, will they be subject to these regulations. ? If they would be, what was the use of improved privacy features in the first place? These are some of the questions that will have to be addressed in the near future.
Most of the top cryptocurrencies by market cap have outperformed Litecoin since the sharp drop in mid-March.
Since then, Bitcoin and Ethereum have increased by more than 130%. Even XRP, which is believed to be underperforming in the crypto market, has increased by almost 88%. Meanwhile, LTC increased only 84%.
Although such a move is quite large, when compared to the general market level it looks very small. However, on-chain figures are revealing that Litecoin may be preparing for one. strong price increases.
Litecoin’s social activity metrics explode
Data from Santiment reveals that since mid-April, Litecoin’s social activity has spiked year-over-year.
During the first quarter of 2020, the amount of information about LTC mentioned per 1,000 crypto social media channels was hovering around 70. But as Q2 kicked off, Litecoin’s social activity count has exploded, reaching a score of 722 by the end of April.
Historically, this altcoin usually starts an uptrend as social activity metrics go up, which is also possible for now.
In addition to social activity, the token’s age chart also adds credibility to the bullish outlook. This metric is used to measure the amount of tokens transferred from one address to another on a given day and the time since they were last moved, according to Santiment.
While this movement doesn’t necessarily mean the LTC price will go up, the correlation between this price and signal has been developing over the past three months.
For example, when the Litecoin price dropped as much as 50% between March 12 and 13, over 200 million inactive LTC tokens were moved to different addresses. After that, this cryptocurrency increased by more than 76%.
A similar event took place on April 16. After a 20% retreat, a large number of tokens changed hands, resulting in a 17% increase.
Now that almost 107 million LTC tokens have been moved to different addresses on May 18, history could be about to repeat itself.
IntoTheBlock’s “In / Out of the Money Around Price” (IOMAP) pattern shows that Litecoin is facing strong resistance ahead. About 75,000 addresses are selling more than 1.24 million LTC between $ 47 and $ 48.4. Such a large bow wall could put an end to the momentum.
But if this level is conquered, the LTC price could rise to the $ 70 level. IOMAP shows that there aren’t any significant barriers between these prices.
Given the unpredictability of the crypto market, it is essential to consider the other side of the trend. If the selling pressure behind Litecoin starts to increase, then the closest support to watch out for is $ 43, lower is at $ 39.
Already 65 million LTC have been mined. There are currently less than 19 million LTC minable, as reported by AZCoin News today, May 13.
Accordingly, on December 12, 2019 at 20:04:39 UTC, block 1,840,000 created the 65 millionth Litecoin, marking another milestone on the network. There are currently less than 19 million Litecoins mined, with half of that expected to be minted over the next four years. Litecoin was last estimated to be mined around 2142 due to the deflationary nature of the network.
According to data from blockchair, block 6,831 KB has been mined by LTC.TOP and has 19 transactions (18 of which are segwit type transactions) with 32 inputs and 38 moving outputs Ł90,97470744 ($ 3,835) (with average age 56,587 days) online.
The current network inflation rate according to litecoinblockhalf.com is 4.13% which equates to ~ 7,200 new Litecoin being mined per day, and the current network hash rate is 182TH / s.
In August, Litecoin completed its second halving, reducing the block reward to 12.5 LTC. Before halving, LTC reached its highest level of the year at $ 140, however the price fell shortly thereafter and is currently trading at $ 42.2.
Litecoin has had a tough year and is now 51% down on altcoins in the past 12 months. The lack of GitHub activity and the planned protocol upgrade led Litecoin co-founder Charlie Lee to admit 2019 saw historic lows in the number of developers working on Litecoin Core (the software that operates the node. network).
Early 2020 is no different and Charlie Lee asks the LTC miner to make a voluntary donation to help drive development funding. Uncertainties about Litecoin’s future have caused investors to lose interest in the project and are reflected both online and in the LTC transaction metrics.
What’s interesting is that some people are silently hoarding LTC.
LTC trading volume fell to a 2-year low
Volume is the most relevant indicator to reflect the interests of traders and LTC has failed miserably in this area. Trading volume on major exchanges has been on a downward trend for the past 12 months and has recently hit its lowest level in 2 years.
LTC ranks 3rd in terms of transparent trading volume on Nomic at $ 80 million per day. This is 50% higher than BCH and EOS but 45% lower than 11 months earlier when there was an average of $ 146 million in daily volume.
There are many reasons for drastic change, and it should be noted that even less activity happening on the exchange does not mean less use of blockchain.
On-chain metrics provide practical insights into transfers, fees, active addresses and many other useful metrics of interest to traders.
Adjusted remittance value
Remittance value is the leading on-chain metric measuring user activity as it adds up all the coins moved daily. CoinMetrics analysis provides more accurate data by tailoring these metrics to exclude mixers and transactions of the same entity.
The adjusted daily remittance value fluctuates around $ 20 million, 83% lower than the 2019 peak. Current levels are comparable to XTZ, a much newer and much smaller cryptocurrency with the case. Primary use has nothing to do with fast or cheap deals.
Significant reduction in transaction fees
Charlie Lee proposes a shorter block period than Bitcoin and a simpler algorithm that removes signatures from the original data for higher transaction yields.
According to Luke Childs ‘How Many Confirmations’ analysis, such a move could bring significant interest to LTC in the past but fade away as users realize the need for 270 validated to match the 3-block Bitcoin mining power.
The average LTC fee per transaction has dropped to $ 0.011, the lowest level since October 2015. Although there are many reasons like 75% use SegWit but previous daily remittance value analysis showed that the demand of users is not high.
While most of the average Bitcoin block size exceeds 1.2 megabytes, the LTC averages less than 0.2 megabytes even though they both have similar capacities.
Low usage means less fees, a decrease in miner profits, and lead to a negative feedback loop when investors notice the processing power behind each blockchain.
The LTC hashrate has decreased by 45% since the halving in October 2019, often raising concerns about 51% attacks. Theoretically, it can be used to compete with honest miners.
Investors are hoarding instead of dumping LTC After so many negative indicators, readers will probably think that owner activity is also weakening because both price and network usage tend to decrease for more than 1 year.
Furthermore, recent code advances have been near zero, including the proposed MimbleWimble technology security in October 2019.
Curiously, this speculation is incorrect as 63.8% of the LTC supply remains untreated in the past 12 months. In fact, this is the highest ever.
According to the Hodl Wave chart above, also known as the UTXO age distribution chart, the percentage of money that is not moving is increasing at an extraordinary rate.
The number of coins not moving for 12 months or more in early 2020 stands at 56.7%. This 7% difference is held by the long-term investors currently worth $ 209 million, enough to get 30% of the entire supply of DASH.
There is no way to find a reason for a hoarding, but its impact on circulating supply is positive.
Recently, investors have been speculating about Litecoin’s potential integration with ADA and if true, this could be a bullish factor for LTC.
There is also the possibility of leaning on the general crypto market bull trend and as investors start to tumble about the ‘alt season’, LTC will pump strongly and long term investors tend to limit selling. at the dawn of time.
The Mempool logic for implementing MimbleWimble on Litecoin created a slightly more complex area than previously predicted, causing basic code modifications to this aspect.
The MimbleWimble-focused testnet will launch in September 2020 and is one of the most anticipated features for the broader Litecoin ecosystem.
Test more before launch
In the June update to the MimbleWimble deployment announced over the weekend, project lead and developer Grin David Burkett released details on the protocol’s progress since last month, issues. that the developers face and some important mitigation.
“A very minimal implementation that supports MW transactions has just been compiled,” said Burkett, but the code to support mining the expansion blocks where MimbleWimble transactions are stored has been made.
More testing is needed before implementation. Burkett noted that “there are some tough edges,” while writing about concerns about storing Mimblewimble block data in a separate database.
Having two separate databases can lead to a host of problems in the future, which causes an inability to generate atomic updates, which in turn causes databases to fail. synchronization, Burkett explained.
“This can lead to a host of problems, possibly even ones that could be exploited by remote attackers.”
Due to these concerns, Burkett decided to spend some time modifying the code to serialize and re-serialize MW blocks and transactions to disk.
Burkett revealed that the team has built part of their work using a platform for segwit enhancement to support additional data without a major change to the existing block storage format.
This means that the upgraded nodes have saved important expansion block data to disk in the same place where the blocks are stored, without having to introduce additional databases.
“Adding support for the sharing of simple transactions over the p2p network is relatively easy, which is the first step towards the target of MW data processing in July as part of the initial block download ( Initial Block Download) ”.
The post confirmed the MimbleWimble implementation was still on the right track, with July seeing the initial block download, August scheduled for the reorder logic, and September with the Activation logic and the testnet launch.
MimbleWimble was first proposed in 2016 to fill the security gaps in the Bitcoin protocol.
Litecoin founder Charlie Lee tweeted last year, the protocol will be adopted to bring confidential transactions to Litecoin:
“Flexibility is the only characteristic of stablecoins that Bitcoin & Litecoin are lacking. Now that the extensive debate is over, the next battlefield will be about fungibility and privacy.
Now I am focusing on making Litecoin even easier to replace by adding Secret Transactions. ”
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