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Litecoin Daily Transactions Soar to $9.6B as ETF Hype Builds

Litecoin Daily Transactions Soar to $9.6B as ETF Hype Builds

TheCoinriseTheCoinrise2025/02/20 16:00
By:Anisha

Litecoin is making waves in the crypto market, with daily transaction volumes surging to $9.6 billion as interest in a Litecoin exchange-traded fund (ETF) gains momentum. On February 21, blockchain analytics firm Santiment reported that Litecoin’s market capitalization had surged by 46% between February 2 and 19, citing increased investor enthusiasm and growing network activity.

This sharp rise in transaction volume is significant—just five months ago, in August 2023, Litecoin processed only $2.8 billion per day. The latest figures represent an impressive 243% jump in network activity, reinforcing Litecoin’s growing role in the crypto ecosystem.

Litecoin ETF Listings Spark Bullish Sentiment

Momentum behind a Litecoin ETF is picking up, with major financial institutions taking concrete steps toward launching such products. On February 19, the SEC acknowledged a rule change for listing the CoinShares spot Litecoin ETF on Nasdaq , signaling the start of a regulatory review process.

Just a day later, market observers noticed the Canary Capital Litecoin ETF listed on the Depository Trust and Clearing Corporation (DTCC) system under the ticker LTCC. The DTCC plays a crucial role in global finance, handling trillions of dollars in securities transactions daily. According to the Litecoin Foundation, this listing is an important preparatory step before a potential fund launch.

Despite these developments, analysts caution that ETF approval is not yet guaranteed. Bloomberg ETF analyst Eric Balchunas noted that while the DTCC listing signals progress, it does not confirm regulatory approval. However, he remains optimistic, maintaining a 90% chance of a Litecoin ETF being approved this year.

LTC Outperforms BTC

News of the DTCC listing had an immediate impact on LTC’s price, causing an 8.5% intraday jump from $127 to $138 before a slight pullback on February 21. Over the past two weeks, LTC has gained nearly 30%, far outperforming Bitcoin, which has remained relatively stagnant after dipping below $100K earlier this month.

Litecoin’s price has doubled since early November, outpacing the broader crypto market’s 42% gain over the same period. Analysts attribute this rally in part to speculation surrounding a potential Litecoin ETF, coming just 13 months after the U.S. Securities and Exchange Commission (SEC) approved Bitcoin’s first spot ETFs.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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