With the approach of a major update in Litecoin, some investors are predicting an increase in price as mobility in the blockchain network also increases.
In the crypto universe where Bitcoin is introduced as digital gold, digital silver interpretations have been made for Litecoin since the day it first appeared. However, earnings are not the case. This year, while Bitcoin earned twice as much as gold, Litecoin almost caught up with silver.
With the approach of a major update in Litecoin, some investors are predicting an increase in price as the mobility in the blockchain network also increases.
The update is about integrating a privacy protocol, also known as Mimblewimble, into Litecoin. Identities of senders and recipients are protected with this protocol. In addition, with the help of the protocol, the scaling ability of the network is also developed in order to make more transactions in the same time period.
The testnet of Mimblewimble, which has been working for about a year, is planned to be made at the end of September.
According to the information received from Veyi provider Glassnode; The Miblewimble plugin has also created an increase in Litecoin users and investors. The number of daily confirmed transactions on the Litecoin blockchain has more than doubled this year, and last week reached a 7-day average of 48,948. This figure is the highest level reached since February 2018.
Litecoin supporters think that thanks to the integration of the Mimblewible feature, users will be more interested in LTC, otherwise tokens such as Monero (XMR) or Zcash (ZEC) will be preferred. As it is known, privacy-oriented tokens such as Grin AND Beam also contain Miblewimble.
All these claims seem to be sufficient for Litecoin to rise. LTC has seen a 50 percent rise as of 2020 and has reached the level of $ 63.
Mathew Dibb, co-founder of cryptocurrency tracking and index futures provider Stack, commented, “Litecoin’s upcoming Mimblewimble update has caused an increase in active addresses and transactions.”
Nicolas Pelecanos, the trade manager of NEM Ventures, a crypto money investment firm, said, “The scalability problem that had previously cooled many users, that is, the increase in the number of transactions that can be made instantly, should be achieved with this update.”
Pelecanos also stated that when the price of LTC reached $ 400 in 2017, the network congestion was enormous.