Litecoin's market cap surged 46% amid ETF approval speculation and increased network activity.
Rising Price and Network Activity
According to Santiment’s data, investors anticipate the approval of a potential ETF for Litecoin. Increased network activity and ETF listing rumors have caused Litecoin's market capitalization to soar by 46% in recent weeks. There was an increase in both price and transaction volume between February 2 and February 19, 2025.
Strengthening Litecoin On-Chain Activity
Beyond price appreciation, Litecoin’s network utility has expanded. In late August 2024, the blockchain processed $2.8 billion in daily transactions. However, recent data confirms an exponential increase to $9.6 billion per day. This uptrend indicates robust adoption and greater utilization of the network. Furthermore, the correlation between transaction volume and price movements suggests increasing confidence in Litecoin’s long-term value.
ETF Approval and Its Implications
Investor optimism grows as the SEC evaluates the ETF proposal. Once approved, Litecoin would enter the mainstream sphere, just like the early Bitcoin ETF launch. It will attract more institutional interest, adding liquidity and stability to the market. The new U.S. government, with its favorable regulatory environment, further increases the chances of approval. If approved, the Litecoin ETF could pave the way for similar funds based on XRP and Solana, triggering greater institutional adoption of the cryptocurrency market as a whole.
Increased network activity and the likelihood of ETF approval contribute to Litecoin's rise, strengthening its position as a significant digital asset.
