crypto-news-flash.com
- Community members express disappointment over Litecoin’s inability to scale the ecosystem.
- In response, Litecoin’s Managing Director is highlighting the ongoing issues and proposing possible solutions.
One of the long-standing blockchains, Litecoin, is attempting to tackle some of its biggest network challenges as community members speak about long-standing obstacles. While a handful of blockchain networks have previously been scrapped out of the market, Litecoin has managed to survive the occasional market woes since its inception in 2011.
The network was not only compared to Bitcoin on previous occasions, it was also committed to solidifying its position as a leading Blockchain network, with its MimbleWimble privacy upgrade in 2022. Despite these milestones, Litecoin has failed to scale its network to catch up to its counterparts, and community members are collectively unsatisfied with the ongoing development.
Alan Austin, the Managing Director at Litecoin, who noticed the collective comments suggesting that the network is too focused on its sound money principle, explained that the network has been consistently working on adoption.
While a handful of Blockchains have been criticized for inflating their network and native token value, Austin maintains that LTC does not benefit from network manipulation.
“Litecoin is a distributed network that doesn’t have founder coins to manipulate the price or create artificial supply constraints. Unfortunately for those focused specifically on price, the very same qualities that make Litecoin sound money also impact the way price can behave.” He asserted.
He went on to explain that most assets typically catch up with network growth, but this is not a guarantee. As such, scaling by way of development and adoption is the only test forward.
On-chain metrics signal sideways network performance
At present, the network relies on its small team of staff, most of whom are reportedly earning “much less than they can be making elsewhere”, and are committed to pioneering the sound money movement.
Calling for community members to collectively support the network’s growth, Austin wrote the following;
“..Before pointing the finger at Litecoin Foundation or it’s team because you are frustrated about price, or complaining that the Foundation isn’t doing enough, remember that this is a decentralized movement and ask yourself what you can be doing to help?”
Even though Austin claims that market metrics reflect exceptional growth in terms of activity and usage, on-chain metrics spotlight decent network growth, as well as stagnancy in certain areas. For one, transaction volume, tracked by the 30-day moving median, reached a 660k all-time high in January. On the flip side, the transfer volume reached 113.4 million LTC in mid-January.
Transfer volume has since taken a hit since then, and has declined to as low as 36.2 million in the same month. Similarly, active addresses have decreased from 1.37 million in December, to 329,000 this February.
Trading at a press time price of $68.80, LTC is nursing mild weekly and monthly gains, alongside other altcoins. The 7-day technical chart shows that beats have successfully pushed buying prices downward, although the 1-day trading chart shows otherwise.