Technical and Market Analysis:
The Pillars of the Recent Rise of Litecoin
Known as digital silver in contrast to digital gold (Bitcoin), Litecoin was conceived in 2011 with a clear purpose: to be a faster and cheaper payment method than its predecessor
Its technical architecture allows for a block generation time of approximately 2.5 minutes, four times faster than Bitcoin's 10 minutes, resulting in quicker transaction confirmations and lower fees, strengthening its case for everyday transactions.
Despite the price of US$ 123, reached last Friday (8), representing a five-month peak, it is still about 70% below its all-time high from May 2021. However, the recent appreciation is not merely speculative but driven by three fundamental factors:
1. Expectation of a Spot ETF:
The regulatory environment in the United States, perceived as more favorable under the administration of Donald Trump, has renewed hopes for the approval of new cryptocurrency ETFs
Litecoin is at the forefront of this expectation. Prediction platforms like Polymarket indicate an 80% probability for the launch of an LTC ETF as early as 2025
This optimism is supported by formal registration requests already filed by major managers such as Grayscale, CoinShares, and Canary Capital, signaling strong institutional interest
The approval of an ETF would simplify access for traditional investors to Litecoin, potentially unlocking significant capital flow
2. Validation as a Payment Method:
The original thesis of Litecoin as an efficient payment system is gaining traction.
Data from July from CoinGate, a prominent payment gateway, reveals that LTC accounted for 14.5% of the transaction volume on the platform
This number positions it as the second most used cryptocurrency for payments, surpassing popular stablecoins like USDC and trailing only Bitcoin.