The anticipation surrounding the ‘historic’ upgrade was setting Litecoin up for a rally. But upon the launch of the upgrade, the investors’ reaction seems to have fallen flat.
It reminds us of the times when the smart contracts on Cardano with the Alonzo hard fork were to be introduced. Despite the development buzz, investors’ interest waned.
Litecoin is set to fall?
LTC is one of the oldest altcoins in the crypto space. At press time, it was trading at $62.67. Litecoin witnessed another downtrend with the market crash as the coin dropped by over 13.79% over the last week.
Most of the decline came in the previous 72 hours alone, which brought LTC down from $70.16.
The events unfolded precisely a day after Litecoin activated the MimbleWimble upgrade. This was a historic upgrade for the Litecoin chain as it introduced the confidentiality feature allowing users to conceal their transaction data. It also catered to lower transaction fees and scalability issues.
But, what it failed to bring in was the hype that was needed to turn the state of the altcoin around.
As it is, Litecoin is barely a competitive chain in the quickly evolving crypto space where blockchains are doing their best to evolve and support web3 functionalities.
The token is still running on proof of work and offers no web3 capabilities. Plus, it has remained just a means of transaction for the supported merchants.
Notably, the cryptocurrency has been consistently losing its value in the market since its peak in May 2021. As of this writing, LTC’s value in the crypto market as an asset for investment has declined to the same level it was back in April 2020.
Some of Litecoin’s faithful long-term holders also managed to predict this fall or involuntarily moved their holdings around to prevent whatsoever outcome of the MWEB upgrade.
This is verified by the consumption of 421.07 million days, which, although a relatively smaller figure, is still the highest noted since 7 April.
This was also the trigger that broke the almost two-month-long trend of accumulation among LTC investors.
If Litecoin can recover from the bearish state cannot be declared at the moment since LTC is heavily bearing the broader market’s bearish cues in its price action.