Litecoin's Transactions Surge 243% Amid ETF Hype, Price Spikes by 8%

Litecoin (LTC) is experiencing significant momentum, with its daily transaction volume surging 243% in just five months. This growth comes as excitement around the potential approval of Litecoin exchange-traded funds (ETFs) builds, fueled by preparations for ETF listings in the United States.

Over the past week, Litecoin's network has processed an astonishing $9.6 billion in daily transactions, reflecting a notable rise in network utility. As a result, Litecoin's market capitalization has surged by 46% between February 2 and February 19, indicating a surge in investor interest. This spike is in part due to the strong performance of the network, which saw transaction volume grow from around $2.8 billion per day in late August to its current level, marking a 243% increase.

Alongside the boost in network activity, Litecoin's price has also seen impressive growth. Since early November, LTC prices have more than doubled, far outpacing the broader crypto market, which has grown by 42% over the same period. As of February 21, Litecoin’s price sits at $134.26, after a sharp 8.5% increase on February 20, driven by news that Canary Capital’s spot Litecoin ETF had been listed on the Depository Trust and Clearing Corporation (DTCC) system. This event, a key preparatory step for the ETF’s potential launch, saw Litecoin’s price rise from an intraday low of $127 to $138 before slightly pulling back.

The growing anticipation surrounding Litecoin ETFs, particularly after the success of Bitcoin's ETFs, is contributing to the surge in both transaction volume and price. The Securities and Exchange Commission (SEC) posted an acknowledgment on February 19, recognizing a rule change for CoinShares’ proposed spot Litecoin ETF to be listed on Nasdaq. Additionally, Canary Capital’s Litecoin ETF was spotted in the DTCC system under the ticker LTCC on February 20, further boosting market excitement.

Although Bloomberg ETF analyst Eric Balchunas cautioned that the listing does not necessarily mean the ETF is ready for approval or trading, he noted that the move signifies a strong step toward its potential launch. He also highlighted that analysts have assigned a 90% probability to the approval of a Litecoin ETF this year.

As investor enthusiasm grows, Litecoin's market performance continues to outpace other major cryptocurrencies. Over the past two weeks alone, Litecoin’s price has climbed nearly 30%, a stark contrast to Bitcoin, which has remained range-bound since falling back to five figures earlier in February.

With the potential for Litecoin to follow in Bitcoin's footsteps with its own ETF, the market will likely continue to watch for regulatory developments and further signs of institutional interest in the coming months.