I never understood what's the point of Litecoin. It just used a different mining algorithm and dropped the block interval from 10 to 2.5 minutes; big deal. Lots of folks bought it, though, back in 2011, and that's probably the only logical explanation it survived all these years. Maybe people preferred it since they could get their transactions confirmed much sooner and due to the low fees.
Anyway, now with the intensive development of off-chain solutions, it's a matter of time until its users move out.
It's not only about how many people are holding Litecoin, it's also due the fact it's mined by ASICs, hence the blockchain is pretty much safe.
Plus, afaik, Litecoin did implement this and that before Bitcoin too. With its lower value it has been used by exchanges as a base currency for the very cheap altcoins. And with the fast times and low fees it is considered by many a valid alternative to Bitcoin.
I also agree that's only a copycat. And I guess that if it wouldn't have had the ASICs, it would have been pretty much dead. But with the ASICs in the equation, I am not convinced that people will actually "move out" that much.
A Morning Consult survey published on Sept. 21 has found that frequent Walmart shoppers are two times more likely to own Bitcoin than the average American.
Something looks off for me. I don't know what, but I find hard to believe such relationship between Walmart users and Bitcoin...