The price of Litecoin (LTC) has seen a significant jump, rising nearly 9% to approximately $121.10. This increase is attributed to several key factors, including improvements to the network, increased real-world usage, and growing institutional interest.
Strengthening Litecoin Network
One reason for the price surge is the strengthening of the Litecoin network. The blockchain has achieved an all-time high hashrate of 2.54 PH/s, indicating miners' confidence and enhanced security for the network.
Litecoin has also rolled out the MimbleWimble Extension Blocks (MWEB), which provide users with improved privacy and more efficient transactions.
The Litecoin Foundation is furthering efforts with the LitVM project, aimed at supporting DeFi and NFT through zero-knowledge rollups. Coupled with fast 2.5-minute block times and ultra-low fees, LTC remains a strong option for quick, low-cost transactions.
Increasing Real-World Payment Usage
Litecoin is experiencing more real-world applications than ever. In July 2025, LTC accounted for 14.5% of all crypto payments on CoinGate, ranking second only to Bitcoin's 22.9%.
Integrations with platforms like PayPal, Venmo, and Telegram Wallet, as well as merchants like Travala and BitPay, are enabling users to spend Litecoin like regular cash.
Transaction activity surged 243% in the five months since Canary Capital proposed a Litecoin ETF. Low fees of around $0.03 and quick confirmations make it ideal for microtransactions and cross-border payments, sustaining growing demand and reducing selling pressure.
ETF Developments and Institutional Demand
Major investors are starting to take notice of Litecoin as well. Grayscale, Canary Capital, and CoinShares have all filed for Litecoin ETFs, and Bloomberg analysts estimate a 95% chance of approval by the end of 2025.
There is already movement from institutions; MEI Pharma allocated $100 million in Litecoin, and Grayscale increased its holdings to 2.1 million LTC.
If an ETF gets approved, it could open the door to even more capital and potentially push the Litecoin price toward the $140-$160 range in the near term. With a stronger network, rising payment activity, and growing institutional interest, GROK's analysis suggests that the rally for Litecoin has solid ground.
In conclusion, the price increase of Litecoin is driven by various factors, including network enhancements, increased real-world payments, and growing institutional interest. These factors create positive prospects for the future development of the cryptocurrency.
