Litecoin is one of those cryptocurrencies that gets overlooked rather often. In terms of transaction fees, it is one of the cheaper options available. Miners are seemingly flocking back to this network, even though the overall profitability is lower compared to a few weeks ago.
The Current State of Litecoin
Due to Bitcoin’s price breaking out again, most of the alternative markets see similar momentum. While many people focus on Ethereum, Litecoin should not be overlooked either. It is still a very viable and popular cryptocurrency, even if it has far less speculative appeal compared to BTC or ETH. As of right now, one LTC is worth nearly $86, a steady increase overall.
What makes Litecoin so appealing is how it has the same technology as Bitcoin. SegWit activated years ago, and there is a native implementation of the Lightning Network as well. This further shows the network can scale beyond what it is currently used for, should that need arise. Combined with lower transaction fees overall, it is a decent way of moving money quickly.
Looking at the overall hashrate, one has to conclude the network looks rather healthy. A recent dip in mining power has been overcome. For reasons unknown, the hashrate dropped from nearly 270 TH/s to just over 160 TH/s. For most networks, that would be catastrophic, but Litecoin is bouncing back in a convincing manner.
As the hashrate approaches 220 TH/s once again, the network remains secure overall. Granted, compared to Bitcoin, Litecoin’s hashrate is minor. At the same time, the miners are doing a good job to keep everything going. Transactions are processed without delay, creating a win-win situation.
What About Mining Profitability?
One crucial factor to take into account is the overall mining profitability. As far as Litecoin is concerned, there isn’t too much to get excited about. It is a profitable network, with users earning a “bonus” of over $2.5 per GH/s per day contributed. If one has access to plenty of mining power, it may be worthwhile to mine LTC. That is, assuming the electricity costs and maintenance aren’t higher than the actual profit.
Keeping in mind how the hashrate and profitability are rising, Litecoin seems to be in a good place. For a network sometimes ridiculed by diehard Bitcoin fans, it certainly has its place. With a rising LTC value, it is not unlikely that miners will switch back to this network over other altcoins.
Last but not least, it is worthwhile to check the current hashrate distribution. Similar to Bitcoin, Litecoin is mined primarily through pools. For now, Poolin remains the leader with 35.8 TH/s, followed by ViaBTC and Antpool. All of the hashrate seems to be distributed evenly, which is all one can ask for.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at firstname.lastname@example.org