I agree with this, but the Litecoin network can process (on-chain) about 4 million transactions per day (Bitcoin: 1 million). While currently LTC doesn't come close to that number (normal transaction volume is 150-200k per day) there were spikes in 2024 with up to 1.3 million already. "Real adoption" would drive the activity much higher.
Let's now imagine an optimistic world where Litecoin is at $1000 (20x the current price) and it's also roughly 20 times more used than today. Then we would have around 2-4 million transactions per day, and every now and then it would hit the 4 million ceiling. This would mean that the fees would rise, and LTC could lose its character of "cheap payment network".
There's a solution for that however: Litecoin has extension blocks so it can create new sidechains quite easily to deal with this problem. This is definitely an advantage. But I still think the Lightning network is a serious competitor, because the base unit is Bitcoin which is much more popular and also less volatile than LTC. If LTC becomes really popular (>1 million txes per day) then it should embrace second layers too.
There's already a Lightning Network solution built for Litecoin. The base unit is LTC (or Litoshis to be exact). It's just that people are barely using it because Litecoin has ample transaction capacity. At least, for now. Despite declining market prices, I still have faith Litecoin will live up to its name as "Silver to Bitcoin's Gold". It's reliable, fast, cheap, and easy to use. The "mimblewimble" privacy feature is a plus.
As for "extension blocks", that's an entirely new concept for me. Since it allows sidechains to be built on Litecoin, scaling issues would no longer be a problem. In my opinion, Litecoin is extremely-undervalued. Hopefully, the masses realize its true benefits over time.
