Litecoin hasn’t been in the spotlight recently. Its price fell below $100 over the past three months and is now trading around $88, after staying above $100 and breaking $120 multiple times between January and March. While recent technicals are not impressive, there are several reasons why Litecoin might still surprise the market.
1. Possibility of an ETF Approval
One of the biggest potential catalysts for Litecoin is an ETF approval. While Bitcoin ETFs have already been approved, Litecoin is seen as a strong candidate for similar treatment. As a fork of Bitcoin, it shares much of its code and design, and its long track record gives it credibility with regulators.
If approved, a Litecoin ETF could have a significant impact on its price. Compared to other major contenders like XRP or Cardano, Litecoin has a smaller market cap, so even a modest inflow of institutional money could lead to notable gains.
The approval process is still ongoing, but Litecoin remains one of the leading non-Bitcoin candidates for an ETF. According to betting markets on Polymarket, the probability of Litecoin securing an ETF by the end of this year currently stands at 87%.
2. Strong Fundamentals
Litecoin’s fundamentals remain solid. Its structure closely mirrors Bitcoin, with a limited supply, halvings that reduce the rate of new coins entering circulation, and a decentralised network. Unlike some coins that face criticism for centralisation, inflationary supply, or opaque tokenomics, Litecoin maintains a clear and simple structure.
This makes it a reliable asset within the crypto sector. Its scarcity model and stable development over the years have kept it relevant despite falling out of daily headlines.
Read also: Bitcoin vs Litecoin: Key Differences and Similarities
3. Continued Usage for Transactions
Litecoin continues to see widespread use for payments and transfers. It handles a large number of daily transactions and is valued for its low fees and faster confirmation times compared to Bitcoin. This utility supports ongoing demand beyond market speculation.
Its payment-focused usage keeps it active on exchanges and payment platforms. While many newer coins also promise fast transactions and low fees, Litecoin has already been delivering this for years. This ongoing relevance in daily crypto payments provides a foundation for any future growth driven by broader market events or institutional interest.
Litecoin Might Come Back
While Litecoin’s recent price performance has been weak, the possibility of an ETF, its strong fundamentals, and its active network usage could be preparing it for a positive surprise in the coming months. These three factors continue to keep Litecoin on analysts’ watchlists despite the current lack of attention from broader crypto media.
