Litecoin was one of the top coin even though it was a top 10 project in CMC. It is still a good coin to use for payments in various marketplaces as it is still faster than bitcoin and ETH. But there are a lot of new project that are offering better option than litecoin even some stablecoin are being used by some marketplaces where users can use USDT or USDC. Bitcoin competitors like litecoin, Bitcoin cash and others similar to those projects are losing their cause to the Eth L2 project which is highly scalable and business friendly.
L2 projects are usually centralized. What's the point of having low fees and faster settlement times if the network is in the hands of a few players? Besides, L2 requires you to pay an on-chain fee for closing/opening channels. Increasing the block size (on-chain scaling) would be the only way to go. Litecoin may have a 1mb block size, but it can handle far more transactions than Bitcoin because of the reduced block time.
I think it has a place in crypto land, especially when it's one of the few cryptocurrencies out there with decentralization in mind. The constant block reward halvings should make LTC scarcer (and hopefully more valuable) over time (there's a max supply of 84m coins). As long as LTC remains useful, nothing else matters. Just my opinion
