Litecoin (LTC), positioned at #15 among the largest cryptocurrencies by market capitalization, has been showcasing its strength lately, increasing its value by 46% in just over two weeks.
This asset, often eclipsed by more prominent competitors like Bitcoin (BTC), is experiencing a surge of investor enthusiasm, recording $9.6 billion in daily on-chain transaction volumes according to data from Santiment.
Litecoin Gains Traction Amid ETF Speculation
While Bitcoin and Ethereum frequently capture headlines in the crypto sphere, LTC has been steadily gaining traction. As indicated by Santiment, from February 2 to February 19, its market capitalization rose by 46%, driven by heightened network usage and institutional interest.
⚡️ Litecoin doesn’t traditionally receive the social media buzz of other top market cap cryptocurrencies like XRP, Solana, Chainlink, or Cardano. Yet, following some credible ETF speculation, it has quietly experienced a substantial increase in value lately. From February 2 to February 19, 2025, Litecoin’s… pic.twitter.com/FSRpoKt2zd
— Santiment (@santimentfeed) February 20, 2025
The excitement is not merely conjecture. Recently, Bloomberg analysts James Seyffart and Eric Balchunas proposed that there is a 90% likelihood of the U.S. Securities and Exchange Commission (SEC) approving exchange-traded funds (ETFs) associated with Litecoin. The chances of this product entering the market are significantly higher compared to larger market cap cryptocurrencies such as Dogecoin (DOGE), Ripple (XRP), and Solana (SOL).
Canary Capital has submitted a reque Donald Trump’s Treasury Nominee Set to Liquidate Bitcoin ETF Holdings!st to launch a Litecoin ETF, with the SEC acknowledging the filing and commencing its review procedure. If sanctioned, it would allow mainstream investors to access LTC without the need to manage private keys or directly hold the asset.
In Santiment’s perspective, an LTC ETF would not only pave the way for institutional investment but also increase the likelihood of other altcoins being linked to similar financial products.
On-Chain Activity and Market Effects
Apart from the ETF discussions, Litecoin’s $9.6 billion in on-chain trading activity over the last week is noteworthy. This same metric had a value of $2.8 billion just half a year ago, indicating a 242% enhancement from that time.
Additionally, market analysts have forecasted LTC’s next price objective at $140, with a possible surge toward $170 if the momentum persists. At the time of writing, the coin was trading slightly above $133, reflecting a 3.4% increase compared to its level 24 hours prior. Over the past year, the cryptocurrency’s price has risen by more than 94%, elevating its market value beyond the $10 billion milestone.
Though this is minor compared to Bitcoin’s nearly $2 trillion market capitalization, the original cryptocurrency’s recent decline to a two-week low of $93,500 resulted in it being surpassed by Litecoin, which also significantly outperformed the larger crypto market, which has seen a mere 0.60% increase.
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