Litecoin fell some 12% overnight, down to $10.70 from $12.80, as segwit’s hashrate suddenly fell to around 63% over the past 24 hours, suggesting that its activation in this block period is very unlikely.
Overall, uncertainty regarding segwit’s activation has increased, with litecoin’s hashrate seeing a considerable jump yesterday, suggesting new hardware has been turned on, bringing segwit’s hashrate-share down.
It is not very clear where this hashrate is coming from, but the main speculation points to Antpool which had previously been rumored will bring on new hardware to retain segwit’s hashrate share below 75%.
Jihan Wu, Antpool’s co-founder, has vocally argued against segwit, publicly stating yesterday “a founder has abondoned his creation for years. When he came back, he came along with Shaolinfry, and decided to push SegWit. Legit.”
He is probably referring to Charlie Lee, litecoin’s founder, who has been a strong supporter of segwit, even suggesting a flag-day soft-fork, otherwise known as a UASF, may be merged to activate it.
Such method has never been used in a contentious setting and although some are calling for it, it appears to be controversial in litecoin’s community with some segwit supporters arguing against this method of activation.
However, we may see it in action as some miners and developers maneuver in what appears to be very much a political game on both parts.
As far as the wider litecoin community is concerned, there has been no objective poll to gauge levels of support, with the only indication being price movements. They clearly seem to be correlated with segwit’s adoption.
Litecoin has tripled in just a few weeks as the currency gained much attention following its merger of segwit. Moreover, the maneuvers between miners and developers, as well as their potential implications for bitcoin, has made the currency a bit more interesting.
Its price tends to rise or fall depending on whether segwit’s hashrate rises or falls. However, there seems to be some resistance and a potential ceiling at around $12 as despite segwit’s activation seemingly somewhat certain just a few days ago, litecoin decided to sideways.
It’s not clear, therefore, how far segwit will take litecoin, a currency that barely has around 4,000 transactions a day, compared to some 80,000 for ethereum and around 250,000 for bitcoin.
But, when looking at the overall now very competitive digital currencies space, a segwited litecoin might give the currency some chance of retaining relevance as newer and more agile coins compete for the top positions.