Litecoin (LTC) Planning To Trim Transaction Fees To Accelerate Adoption

Litecoin (LTC) is planning to lower transaction fees in its network as part of an upcoming update. While the cryptocurrency boasts of some of the lowest fees, trimming further should strengthen its edge in the sector. In addition to lower fees, the blockchain project also promises additional features.

Transaction fees in the network will drop ten folds from the current 0.001 Litecoin per KB. What this means is that people will only pay 0.0001 Litecoin per KB once the new update goes live. The new transaction fee will be equivalent to about $0.005.

Litecoin has had to trim transaction in recent months in the wake of crypto boom experienced coming to an end. The fees kept on rising as the cryptocurrency price continued to rise late last year and early this year. The fees had initially peaked to $0.1 per transaction and in some instances to about $1.

Sentiments in the larger sector having turned south have forced such projects to rethink their strategies as a way of keeping users excited. Trimming the amount of costs per transaction is seen as one of the alternatives for keeping users glued to the network.

Cryptocurrency projects are increasingly turning to lower transaction rates as an aspect of scaling the project. Transactions fees also go a long way in incentivizing malicious behavior in the network.

“To encourage more adoption and usage of Litecoin, I think lowering the fees are a good thing. We’re not even close to blocking limits, and the block size on disk is small (20GB) relative to other coins. Technically people can already adjust their fees right now to the one above because of the more relaxed min relay/dust relay fee,” said Litecoin core lead developer Adrian Gallagher.

While Litecoin is among the cryptocurrencies that have come under immense selling pressure, it still has enjoyed a stable 2018. A number of cryptocurrencies exchanges have already added support for the altcoin in their platforms.

Gemini is the latest crypto exchange to confirm the addition of Litecoin in its platform.  Billed as one of the most regulated exchanges, Gemini allows people to use Fiat currencies to buy the likes of Bitcoin, Ethereum and now Litecoin.

When it comes to price analysis, Litecoin continues to trade in a tight trading range of between $50 and $60. The altcoin has struggled to move past the $65 mark, seen as the immediate resistance level.  Sharp reversals have come into play, in recent months, above the $60 mark.