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Coinbase CEO Confirms Litecoin Support as Trading Volumes Surge

Coinbase CEO Confirms Litecoin Support as Trading Volumes Surge

Coinbase CEO Confirms Litecoin Support as Trading Volumes Surge

Coinbase customers and users will soon be able to purchase Litecoin with fiat money. On April 5, the company’s CEO Brian Armstrong confirmed with Litecoin creator and Coinbase Director of Engineering Charlie Lee that the trading platform will add Litecoin support to accommodate its growing user base.

In February, Lee first hinted his plan to introduce the Bitcoin Core development team’s scaling solution Segregated Witness (Segwit) to Litecoin. Lee noted that the vast majority of the community does not have a proper understanding of Segwit and its potential impact on the Bitcoin network. As such, Lee hoped to prove the level of optimization and efficiency Segwit can bring to a blockchain network.

Specifically, Lee spoke highly of Segwit’s ability to provide both block size increase and an infrastructure for two-layer solutions such as the Lightning network to prosper. In an Ask Me Anything (AMA) event, Lee stated:

“So as developers, we need to see if the economic majority of Litecoin users want Segwit. From what I am seeing today, the support is overwhelmingly in favor. So if it comes to that, we will have to decide what drastic measures to take to add Segwit to the protocol. But we are not close to that point yet.”

For the most part, Lee’s vision of adopting Segwit for Litecoin scalability met the demands of the community. As mentioned above, miners, developers and users of Litecoin were in support of Segwit implementation from the very beginning.

In order for Segwit to be activated on Litecoin, 75 percent of the network’s miners must signal their support for Segwit. Today, as of April 7, the hash power consensus for Segwit activation is 5 percent away from being achieved.

How Segwit Relates to Coinbase Support & Litecoin Trading Volume

Litecoin price began to surge exponentially upon the introduction of Segwit. The daily trading volume of Litecoin continued to rise as the hashrate supporting Segwit activation increased. In fact, on GDAX, the Global Digital Asset Exchange of Coinbase, Litecoin trading volume surpassed US$10 million.

Lee noted:

Litecoin GDAX volume is over $10M. Brian Armstrong, I think it's time we let people easily buy Litecoin with fiat on coinbase.”

Armstrong agreed to Lee’s proposal and granted the final approval to the Coinbase development team to support Litecoin trading.

Litecoin can be described as a replica of Bitcoin in many ways, in terms of structure, philosophy and purpose. Thus, Litecoin makes a perfect platform to test solutions like Segwit before being activated and implemented onto the Bitcoin network.

Most investors, traders, developers and users are currently eager to see the impact of Segwit on a commercially successful blockchain network like Litecoin. The cryptocurrency community is highly anticipating the activation of Segwit as several large mining pools including the world’s second biggest Bitcoin mining pool F2Pool announced that they will push Segwit on Bitcoin if it is successfully activated on Litecoin.

If Segwit becomes activated on the Litecoin network, the price of Litecoin will continue to surge. As shown on the image above, over the past two weeks, Litecoin price increased exponentially due to the rise of Segwit support and the likelihood of activation.

Author : Joseph Young

Joseph Young is a finance and tech journalist based in Hong Kong. He has worked with leading media and news agencies in the technology and finance industries, offering exclusive content, interviews, insights and analysis of cryptocurrencies, innovative and futuristic technologies.

Brian Armstrong Coinbase CEO Litecoin Segregated Witness