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The cryptocurrency ecosystem is always a hot topic environment. When popular crypto trader and investor “CryptoDonAlt” took to Twitter to open the discussion about Litecoin’s performance over the years, the community reacted with excitement when many dropped their two cents. Some of them are objectively thought-provoking.

Has Litecoin reached its peak?

As observed by the investor, Litecoin has underperformed its competitors over the years. A chart showing the altcoin’s four-year performance timeline shows that the altcoin has declined sharply against both Bitcoin and Ethereum.

TradingView’s LTCUSD chart

In terms of price performance, Litecoin (LTC) lost 70% of its value in May after hitting all-time highs of $ 413.91 to $ 133 at press time. What was once a $ 27 billion market valuation has dropped to $ 9 billion at press time.

Wow, I didn’t think this would be such a hot topic.

LTC has objectively outperformed most of its competitors in the past few years, so I thought it was a fair statement to find that LTC had fallen out of favor.

Thanks for sharing your opinion anyway, it’s an interesting discussion pic.twitter.com/7orx9VTRMr

– DonAlt (@CryptoDonAlt) July 5, 2021

Given that the altcoin was created in 2011 – long before many other assets that currently dominate the market were created – the investor’s question arises; “Why do you think Litecoin has fallen out of favor? Expanding on that thought, why can’t what happened to Litecoin happen to your favorite altcoin? is one that many have asked.

Why did Litecoin fall off?

A similar opinion is shared by a handful of community members regarding the reason for Litecoin underperforming. Charlie Lee’s Litecoin sale in 2017.

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Back in 2017, Charlie Lee dropped a bombshell on the community when he revealed that he had sold his Litecoin holdings at an average price of $ 205.

As expected, the market didn’t respond as well to the reveal as it looked like a founder was abandoning their own project, which could have influenced many sales decisions during that time. Lee added that he would donate the rest in the future and still keep working on the Litecoin project. However, members of the community are still not convinced that the project has seen great growth since 2017.

“It is not used for anything – almost no economic activity, no network effects, pointless. Its main purpose is better served by Bitcoin and its place as # 2 has been replaced by Ethereum, ”wrote a popular trader.

How long can altcoins last before they fall off?

On the wider spectrum, the talks have left room for a larger debate about the expected lifespan of altcoins in the market, as these assets have long gone off track after a few years. The market cup usually decreases sharply as trading volume decreases, suggesting that the asset has little to no use case in the current market.

For DonAlt, Altcoins are only temporary and will continue to be replaced by other newcomers.

In his words;

“I think altcoins will always come and go as soon as better competitors emerge, but I wonder what you guys think.”

However, with Ethereum and the DeFi coins entering the market, the narrative could change in the long run.