Litecoin Surges 46% Amid ETF Speculation and Rising Utility

• Litecoin’s market cap surged 46% as ETF speculation and rising network utility fueled investor confidence.
• Daily transactions hit $9.6B, signaling increased adoption and a stronger correlation between price growth and network activity.
• Analysts see a 90% chance of SEC approval for a Litecoin ETF, potentially unlocking mainstream investor access and institutional demand.

According to Santiment’s data on  X, Litecoin is gaining momentum as investors anticipate the approval of a potential ETF. Increased network activity and rumors of an ETF listing have caused Litecoin’s market capitalization to soar by 46% in recent weeks. There was an increase in both its price and transaction volume between February 2 and February 19, 2025.  

The digital asset now processes $9.6 billion in daily transactions, reflecting heightened investor interest. A financial firm, CoinShares, has officially filed to list a Litecoin ETF on Nasdaq. The U.S. Securities and Exchange Commission (SEC) has begun reviewing the application, with analysts estimating a 90% approval probability by year-end.

Litecoin’s On-Chain Activity Strengthens

Besides 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 movement s suggests increasing confidence in Litecoin’s long-term value.

Historical trends illustrate how transaction spikes align with price gains. The rapid price spike of Litecoin in late November 2024 was directly related to an increase in on-chain activity. The market turbulence caused oscillations between December and mid-January, although the general trend stayed upward. The sustained increase in network transactions underscores its growing role as a key digital asset.

Potential ETF Approval Could Drive Further Growth

Moreover, Investor optimism grows as the SEC evaluates the ETF proposal . Once approved, LTC would be brought into the mainstream sphere- just like the early Bitcoin ETF launch in early 2024- bringing more interest in the institutions and in all likeliness adding liquidity and stability to the market. The ETF then helps investors have access to the asset without the need to deal with private keys or digital wallets.

Additionally, the new U.S. government, with its favorable regulatory environment , further increases the chances of their approval. If the Litecoin ETF does receive approval, it would make way for similar funds based on XRP and Solana. On the other hand, this will trigger greater institutional adoption for the cryptocurrency market as a whole.