Litecoin Price Remains Strong As Bitcoin Activates SegWit

Cryptocurrency litecoin is experiencing prices near its all-time high, in spite of the technical developments responsible for the exponential growth in its value locking in on the bitcoin network.

Litecoin enjoyed a significant upturn in fortunes following the successful activation of SegWit back in April, which afforded a key distinction between the currency and its bigger rival, bitcoin.

Prior to the agreement among miners to activate the currency, it had been trading at around $11, with the SegWit consensus responsible for an over 300 percent growth in its value.

Analysts had feared that the currency could experience downward price pressure once it lost this unique feature.

With the bitcoin scaling deadline resolving in agreement to lock in the SegWit model on the bitcoin blockchain, the distinction that gave litecoin its USP is no longer unique.

However, with litecoin prices remaining strong near all-time highs, trading at around $48, it seems these fears have so far failed to be realized, which could spell good news for investors exposed to the currency.

SegWit, or Segregated Witness, passes transactional information in tandem with cryptocurrency transactions, but crucially exchanges this data external to the blockchain.

Its introduction on the litecoin network was interpreted by many as a trial run for the protocol, ahead of its then-potential adoption by the larger bitcoin network, in response to slowing transaction times and rising execution costs.

While SegWit formally locked in on the bitcoin blockchain network this week, it is not without its critics, with some analysts suggesting more effective proposals exist that could have resolved the bitcoin scaling debate more directly.

In particular, there was strident support for the Bitcoin Unlimited model, which would simply remove the artificial block size caps that had been causing scaling issues within the network.

While SegWit has been agreed as the route forward for the bitcoin community, it comes with a significant technical burden for supporting startups and services, who must now upgrade their systems to handle the new payment structure.

Litecoin’s strong price performance comes off the back of a year-on-year growth of 1000 percent. At the time of writing, the currency was trading at $48, just shy of its July ceiling of $53.