If litecoin had the same market cap as bitcoin, would the fees be roughly the same?

I see a lot of discussion about litecoin having low fees, and that has been my personal experience as well. I know the fees directly correlate with how full the transaction “pipeline” is at any given time & realize this is not a straightforward yes/no question.

Generally speaking, does litecoin have features that will allow it to scale better as the value increases compared to bitcoin? Does the litecoin “pipeline” have a higher capacity?

Your thoughts?

Things would not differ significantly. Marketcap is a bad measure here (too) as LTC has more coins. The blocks are somewhat faster, but nothing significant. The same concept has the same problem if the main layer is saturated. If I remember well, years ago Charlie Lee @coblee had some proposal to optimize the fee market. I can’t remember it being implemented, but it might have been. Still, who bids higher, gets in the block. Bids can go higher if the transacted value is higher. It is really quite simple.

This question had just been asked on Reddit.

Marketcap does not matter. It is the number of transactions that does. Litecoin has roughly about half the transactions of Bitcoin, yet much lower fees:

  • Bitcoin - transaction fee / weekly average - usd 6.40 per transaction
  • Litecoin - transaction fee / weekly average - usd 0.03 per transaction

As everyone can see Litecoin is a prime coin, with faster and much cheaper transaction time.

Also current fair values

  • Bitcoin - weekly avg - usd 18 958
  • Litecoin - weekly avg - usd 196
1 Like