Litecoin Clinging To Top 10 Status
With the massive surge of BNB earlier on in the year and newcomers such as Polkadot, Litecoin has had to give up it's Top 5 status. Litecoin is currently at number 10 and seems to have become a forgotten legend as DeFi, NFT's and interoperability soak up all the limelight. One important aspect we need to remember in regards to Litecoin is that it is an OG and has not only survived a season of massive innovation and advancement but also maintains very high daily trade volumes.
Not only is the LTC market very liquid but it is often a leading indicator for the Bitcoin price and has held it's value a lot better than most other top tier alts. When it comes to volume, Litecoin is streaks ahead of higher ranked projects such as BNB and others. The daily volume of BNB is approximately $300 million or so, which is a lot less than that of Litecoin. The daily volume of LTC is in the region of $1.8 billion.
There definitely is some type of demand for Litecoin but the price is not reflecting it. In 2018 Litecoin had an average daily trading volume of approximately $200 million, which means that the volume has actually increased by almost 10X. There is the narrative that volumes are not accurate on metric sites but that would indicate that all volumes are fake and other coins are not showing this level of increase.
A Trusted Solution For Value Transfer
Despite innovation that has brought on and will continue to bring on amazing new use cases, there will always be the essential need for fast, affordable value transfer. Many people argue that Litecoin is actually the second most secure network after Bitcoin. With the ever increasing rate of BCH hardforks, the BCH network is essence becoming weaker.
As Bitcoin surges further, transaction fees are going to increase and perhaps more than we are anticipating. The world will always need a safe, trusted and affordable solution for value transfer and though it sounds unimpressive, it is still vital.
One thing Litecoin has not done, is rebrand itself in order to cash in on the DeFi hype but continues to remain true to it's original intent and design. This shows focus of purpose and assures users and investors that there is a lot more behind Litecoin than making a quick buck. Yes, Charlie Lee sold his holdings at the top but he has been through a couple of cycles and clearly saw the warning lights flashing.
There are many ways you can interpret a situation but as Litecoin holds to it's core purpose it slowly dismisses accusations and cements itself a top value transfer solution.