Litecoin, the third-largest crypto asset secured by proof-of-work consensus, has shown a price increase after several months of dormancy, driven by a number of factors.

Filing of the First Spot LTC ETF

Earlier this week, Canary Capital filed for the first spot ETF on Litecoin with the US SEC. This event is seen as a potential catalyst for future price growth, especially with a possible change in SEC leadership if Donald Trump wins the election. Litecoin has already received significant support from institutional investors like Fidelity Crypto and Grayscale Investments.

Rising Demand from Retail Investors

According to market and blockchain analysis by Santiment, the current price breakout of Litecoin is largely driven by increased demand from both retail and institutional investors. On October 17, Litecoin's transaction volume spiked to $3.97 billion, the highest since June 3, 2023.

Continued Network Development

The Litecoin network continues to grow, now boasting over 9.2 million holders. As of writing, the network's hash rate stands at 1.31 PH/s, with a total mining difficulty of 42.19 M. Due to its high throughput, low transaction fees, and security, Litecoin has been integrated as a payment method by numerous web3 and web2 business projects. For instance, PayPal-backed Venmo recently partnered with MoonPay, allowing its 60 million users in the US to purchase Litecoin.

The current surge in Litecoin price is explained by various events, such as the potential approval of a spot ETF and increased investor interest. The network continues to develop and integrate into various projects, supporting its ongoing growth.