In terms of prices, Litecoin (LTC) has had a very challenging year, and currently the price of altcoins has fallen 51% in the last twelve months. The lack of GitHub activity and planned protocol updates led Charlie Lee, co-founder of Litecoin, to admit that 2019 has seen a historic drop in the number of developers working with Litecoin Core, the software that drives the nodes.

The beginning of 2020 was no different, and Charlie Lee asked for voluntary donations from LTC miners to support development funding. Uncertainty about the future of Litecoin has led to investors losing interest in the project, and this is reflected in both chain trading measurements and LTC trading calculations.

Interestingly, while most of them see the investor’s disinterest as a negative impulse, some quietly hoard LTC.

The Litecoin volume falls to its lowest level in two years
Volume is the most important indicator of business interest, and Litecoin has failed in this area. The volume of major stock exchanges has declined over the last twelve months and has recently fallen to its lowest level in two years.

Litecoin ranks third in Nomic Transparent’s trading volume at $ 80 million per day. This is 50% more than Bitcoin Cash (BCH) and EOS, but the figure is still 45% lower than in the previous eleven months, when the average daily volume was $ 146 million.

The dramatic change may be due to several reasons, and it should be noted that even less activity on exchanges does not necessarily mean less use of blockchain, as it is.

The calculations along the entire chain provide a realistic picture of conversions, commissions, active addresses and many useful indicators that will be of interest to traders.

Adjusted conversion value
Conversion value is a leading indicator on the chain that measures user activity as it adds all currencies that move in a day. CoinMetrics provides more accurate data by adjusting these numbers to exclude mixers and transactions between the same devices.

Daily adjusted conversions hovered around $ 20 million, down 83% from the peak in 2019. The current level is similar to Tezos (XTZ), a new and smaller digital currency that has little to do with its primary use case for fast or cheap transactions.

Significant reduction in transaction fees
Charlie Lee’s proposal included smaller bitcoin (BTC) blocking periods and a simpler algorithm that removes the signature from the original data for higher transaction performance.

Such a move may have generated much interest in Litecoin (LTC) in the past, but it is no longer valid as users learn that 270 requirements are required to match the processing power behind 3 recovered Bitcoin blocks, according to Luke Childs. Analysis of several confirmations.

Average Litecoin commission per transaction 14 days (USD)

Litecoin means that the average transaction fee is 14 days (in USD). Source: Mineral scales.

Average LTC charges per transaction fell to $ 0.011, the lowest level since October 2015. Although there may be many reasons for this, including 75% using SegWit, earlier daily analysis of the value of conversion points to weak user demand.

While the average Bitcoin block size in most cases is over 1.2 MB, the average Litecoin size is less than 0.2 MB, although both have the same capacity.

Low utilization leads to small fees, which reduces the interest from miners and leads to negative feedback as investors take into account the processing power of each blockchain.

Litecoin hashrate has fallen by 45% since October 2019, which is usually a concern for 51% attacks. In theory, this unused computing power can be used to compete with honest miners.

In any case, there is no positive opinion about the smaller number of miners who channel their investments into Litecoin. Unlike trading, mining is an exceptionally long-term commitment with returns that usually exceed a quarter and sometimes an entire year.

Investors accumulate LTC, do not dump it
After several negative signals, one would expect that shareholder activity would show weakness, as both price and internet use have been in a downward trend for over a year.

We can also notice the low productivity of the latest developments.

Source: CoinTelegraph