According to Cointelegraph, daily transactions on the Litecoin network have reached $9.6 billion as exchange-traded fund (ETF) issuers move to list their proposed Litecoin ETFs in the United States. This surge in activity has coincided with a significant increase in Litecoin's market capitalization, which rose by 46% from February 2 to February 19, as reported by Santiment on February 21. The report attributes this growth to a strong rise in network utility, with the network processing $9.6 billion in daily transaction volume over the past week.
In late August, Litecoin's daily transaction volume was approximately $2.8 billion, marking a 243% increase over five months. Additionally, Litecoin prices have doubled since early November, surpassing the broader crypto market's gains of 42% during the same period. This growth is partly driven by anticipation surrounding a potential Litecoin ETF, coming 13 months after the U.S. Securities and Exchange Commission (SEC) approved the first Bitcoin ETFs.
The SEC recently acknowledged a rule change to list the CoinShares spot Litecoin ETF on the Nasdaq on February 19. Furthermore, a listing for Canary Capital's Litecoin ETF appeared on the Depository Trust and Clearing Corporation (DTCC) system under the ticker LTCC on February 20. The DTCC plays a crucial role in global financial markets, processing trillions of dollars in securities transactions daily. The Litecoin Foundation noted that this listing is a key preparatory step for the potential launch of the fund.
Bloomberg ETF analyst Eric Balchunas cautioned that while the listing indicates preparations are underway, it does not guarantee approval or readiness for trading. However, analysts still estimate a 90% chance of approval this year. In response to the DTCC listing, Litecoin prices spiked by approximately 8.5%, rising from an intraday low of $127 to $138 before a slight pullback on February 21. Over the past two weeks, Litecoin has risen nearly 30%, outperforming Bitcoin, which has remained relatively stable since falling back into five figures in early February.
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