Litecoin (LTC) has been on a downward spiral in the past 30 days. The Bitcoin-forked coin dropped from a market capitalization of over $8 billion USD to below $5.6 billion USD within a month. The past 24 hours has seen the coin drop by almost 7% to trade at $95.63 USD for the first time since December 2017.
Despite this massive drop, the cryptocurrency has maintained daily transaction amounts between USD 250 million and USD 350 million over the same period. Litecoin is still the 6th largest cryptocurrency by market capitalization.
The industry has had to face the challenge of building trust in the market in order to grow and the actions aimed doubt over the credibility of the system. Other cryptocurrencies have also continued to drop in price with only Emericon which ranks 87th and Tether (USDT) trading in the positive out of the 100 largest coins. However, Litecoin has dropped harder with several exchanges listing it as the cheapest in ETH and BTC markets.
Why use Litecoin?
Litecoin is a bitcoin fork that facilitates payments at near zero costs all over the world. It is making the process of Integrating crypto into businesses easier in order to promote its adoption and use as a payment method for goods and services both in-store and online. This would increase the coin’s demand further pushing up its value. Litecoin’s cheap and fast transactions in daily life purchases makes it very easy to access services such as transportation, food among and utilities others. The market remains optimistic on the coin due to the potential value that can be created through the services offered on the blockchain platform.
The digital p2p blockchain platform is accessible on smartphone apps on both Android and iOS stores. It offers faster transaction verification speeds and better storage efficiency. It is also available for trade on about 300 exchanges across different markets. The coin is also divisible and it is possible to own a fraction of the coin. Its high liquidity, consistent trade volumes and industry support make its fundamentals strong as a viable currency for commerce. Besides exchanges, Litecoin can also be accessed through mining.
Litecoin uses scrypt in its proof of work consensus mechanism which make the network safer preventing large scale attacks by requiring more memory and making it very expensive to launch an attack. It’s improvements over the bitcoin include a 75% reduction in the block time. The pay with Litecoin campaign was launched to push for the adoption of Litecoin in businesses. The campaign is growing in popularity with many businesses already. Weepmaps is the latest business to express interest in Litecoin. Users have also been requesting for companies such as Amazon, eBay, Starbucks, seamless and Uber to integrate Litecoin into their payments systems.