Litecoin Booms: 243% Jump in Transactions as ETF Rumors Swirl

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Key Takeaways:

Anticipation of spot ETFs has led to a surge in Litecoin’s daily transaction volume
Since the beginning of October, LTC’s market cap has been rising much faster than Bitcoin’s.
Preparations indicate a likelihood of ETF approvalˏ although that is not guaranteed.

Table of Contents

Litecoin Spotlight: 243% Surge in Transactions within 5 Months.

Litecoin is also doing very well on the network todayˏ with a massive $9.6 billion in transactions. The surge comes as ETF issuers prepare to file the paperwork required to launch a spot Litecoin ETF in the United States. But what is truly driving this incredible growth? Let’s dig deeper into what’s happening.

The Incredible Growth of Litecoin

Litecoin’s (LTC) market capitalization gained an impressive 46% between Feb. 2 and 19, according to data from Santiment. This isn’t mere speculative hype; it’s supported by “its strong rise in network utility,” as Santiment said, with daily transaction volume averaging $9.6 billion over the past week.

Just five months ago, Litecoin had a daily transaction volume of $2.8 billion (late August), which can be compared to the current figure of $ 9.7 billion — there has been a 243% increase. To further compound the bullish momentum, the price of LTC has more than doubled since the beginning of November, far outpacing the wider cryptocurrency market which gained 42% during the same window. It also depicts a cryptocurrency that is not only keeping up but driving the evolution.

Both the price and transaction volume of Litecoin are on the rise. Source: Santiment

Litecoin has long remained in Bitcoin’s shadow, but these numbers highlight a resurgence in interest, utility, and long-term confidence.

The ETF Influence: Adding to the Heat

The excitement over a possible Litecoin ETF is certainly a major driver. As Santiment plainly stated: “There is clear growing excitement around a potential Litecoin ETF, 13 months after Bitcoin’s first ETFs were approved by the SEC.” This analogy to Bitcoin ETFs reminds us of how those approvals have driven Bitcoin price, and mainstream adoption of Bitcoin and cryptocurrencies.

⚡️ Litecoin doesn’t typically get the social media hype of other top cap cryptocurrencies like XRP, Solana, Chainlink or Cardano. But on the back of some legitimate ETF rumors, it has quietly seen a big jump in value recently. From February 2 to February 19, 2025, Litecoin’s… pic.twitter.com/FSRpoKt2zd
— Santiment (@santimentfeed) February 20, 2025

U.S. SEC proposes rule change for CoinShares spot Litecoin ETF listing on Nasdaq on Feb. 19. This is a significant step in the process and indicates a growing acceptance from regulatory agencies to Litecoin-based investment products.

Adding to the ETF excitement, Canary Capital’s Litecoin ETF appeared on the Depository Trust and Clearing Corporation (DTCC) system with the ticker LTCC on February 20th. The DTCC is an essential cog in worldwide financial markets, handling trillions of dollars’ worth of securities transactions each day. This, according to the Litecoin Foundation, is “a key preparatory step for the fund’s potential launch.”

Canary Capital’s ETF

Canary Capital’s move reflects strong confidence in the potential of Litecoin ETFs. It is not mere opportunism but a recognition of Litecoin’s value and the benefits of greater liquidity.

ETF Approval is not Guaranteed.

While optimism is warrantedˏ it is important to remain realistic. Being listed on the DTCC does not guarantee approval or tradabilityˏ cautioned Bloomberg ETF analyst Eric Balchunas. It merely means that the issuer is preparing for the day when it does get approved. Eric Balchunas suggests there is a 90% chance of approval this year—though this remains an optimistic estimate, given the uncertainty surrounding regulatory decisions.

This serves as a reminder of the complexity and uncertainty surrounding ETF approvals—not just due to regulatory scrutiny, but also market conditions and competition. While the signs are promising, it’s still too early to celebrate.

Market Reaction: LTC Price Continues to Increase.

The market reacted quickly to the listing news from the DTCC. LTC’s price surged roughly 8.5%, bouncing from an intra-day low of $127 to as high as $138, before retracing slightly on February 21st. This immediate reaction emphasizes how readily the market responds to potentially positive news when it comes to ETF prospects.

Litecoin has gained nearly 30% in the last fortnight, outperforming most blockchain networks and tokens. Meanwhile, Bitcoin (BTC) remains range-bound after falling below $100,000 in early February. The divergence in their performance indicates that Litecoin is presently riding on unique tailwinds particular to its ecosystem, especially the ETF adage.

Litecoin is not just following Bitcoin anymore, and the market’s reaction is a testament to that. It is now charting its own course due to its unique attributes and investment opportunities.

Long-term Price Prediction: Litecoin Price Prediction

Despite the high volatility of the cryptocurrency market, Litecoin is soaring again in the hopes of ETF approval. Litecoin ETFs could expand access to the asset for a broader audience and enhance its market presence.

Litecoin’s future remains to be seen, but the recent increase in activity and interest from institutional investors suggest a cryptocurrency with huge potential. Time will tell if Litecoin can continue to gain strength and cement its status as a top player in the digital asset market.