That's exactly why an 80% drop now for LTC means a lot more than a 70% drop in BTC back in 2012. In 2012 when activity picked up again, it was almost entirely going back to BTC. Any increase in activity now won't be going back to LTC. There is simply no reason for that to happen. There are many more and better alternatives to LTC now.
OK, I see your point. I agree there are better alternatives, but I still feel like LTC has at least one more giant pump before (if) it dies a long slow death. There is just so much money invested in scrypt asics, and most of them haven't seen the light of day, that I think it will have another boom cycle (and an accompanying boom in the number of tx/day). But who knows...
Would those script ASICS be specific to LTC ? .. or would LTC possibly become the 'byproduct' of a merge mine for a better alternative coin (thus depressing its price further).