Can the next MimbleWimble update revive the Litecoin fortune?

After years of development, Litecoin’s MimbleWimble (MW) feature could be rolled out this month.

In the past week, robbie coleman, the creative director of the Litecoin Foundation, said that MW is “now in the final review of the code.” Also, in December 2021, David Burkett, the lead developer of the project, gave its estimate for a launch in January 2022.

At this time last year, Litecoin ranked fifth with a market capitalization of $ 11.3 billion. A year later, it is now ranked 24th with a market capitalization of $ 9 billion, showing that it has fallen out of favor with investors.

The reasons for this are many, and the time it has taken MW to get to this point has not helped.

Nonetheless, supporters hope that MW will act as a catalyst to bring back former glories.

What is MimbleWimble?

megawatts It is a feature that structures and stores transactions on a blockchain in such a way that it allows for better scalability of the network and an element of privacy.

It achieves this by having a more compact method of recording transactions. In turn, the blockchain data is smaller, making it easier to download, sync, and verify.

The block is verified and confirmed in the usual way. But each block consists of multiple transactions that do not reveal details of each transaction that composes it. In short, there is no easily identifiable trace to link individual inputs to their corresponding outputs.

Through this obfuscation process, users have a high degree of privacy. Add to that the fungibility this brings, where each Litecoin is indistinguishable from the next, and $ LTC will have the properties of solid money once MW is launched.

Could this wake Litecoin from its crash?

Litecoin has been working on MW since at least before september 2019. While the initial interest was strong, the game has changed significantly since then, for example in the popularity of DeFi, which began to take off around the summer of 2020.

The first MW test grid occurred more than 16 months ago, in September 2020. But constant delays have plagued the project.

However, with MW finally close to being rolled out, Litecoin supporters are excited about what it may be. In that, @TheFalconTrades posted an LTCBTC chart showing a descending triangle, accompanied by confident talk about retreating at the “2022 $ LTC bomb.”

Source: @TheFalconTrades on Twitter.com
Source: @TheFalconTrades on Twitter.com

“It will be a lot of fun to say ‘I retired from the $ LTC 2022 ‘Bomb – Everyone looking for a magic meme coin, I’m looking at the most bullish chart of all time. “

However, because the descending triangles show gradual lower highs, meaning that the bears are constantly winning, the descending triangle often breaks support and continues to fall.

In response, @TheFalconTrades recalls anecdotal incidents of this setup breaking to the upside, earning him more money than other plays.

Based on what is in the top 10 now, it is easily argued that investors prefer performance over privacy. With that, time will tell if Litecoin can make a comeback.

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Source: https://cryptoslate.com/can-the-upcoming-mimblewimble-upgrade-revive-litecoins-fortunes/

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