Litecoin has been on a mini-run, with its price soaring above $73 for the first time since July, marking the first notable breakout from Bitcoin and other altcoins. Litecoin has shown significant volatility since the beginning of the year, with its value experiencing rapid growth and sharp declines.
Litecoin, often referred to as the “silver” to the “gold” of Bitcoin, has been a consistent player in the cryptocurrency space since its creation in 2011. our data. LTC witnessed a sharp rally, recording a sharp jump from $64 to over $73 for the first time since July.
As mentioned by Santiment in the X post, the gradual increase in retail interest and recent developments surrounding Litecoin are driving the price higher.
📈 Litecoin is enjoying a strong mini-run, rising above $73 for the first time since July. This is the first medium-sized breakout from Bitcoin and altcoins since the spring. There are two main factors:
⚡️ LTC’s on-chain transaction volume continues to grow, reaching almost $4 billion… pic.twitter.com/oSKt7mRC2L
— Santiment (@santimentfeed) October 17, 2024
On October 15, asset management company Canary Capital filed an S-1 Form for a proposed Litecoin Exchange Trust Fund with the U.S. Securities and Exchange Commission (SEC). This was a record set by Canary Capital as no other US-based asset manager has entered the exchange-traded product.
Litecoin’s on-chain trading volume reached a 16-month high of approximately $3.97 billion, according to Santiment’s market data analysis. This increase in on-chain trading activity coincided with a significant increase in online discussions about Litecoin across various social media platforms. Litecoin price rose just 1.16% in the past 24 hours to $71.98, giving it a market cap of $5.45 billion.
Reasons for Litecoin price breakout
After Canary Capital’s announcement, LTC surged more than 9% to a two-month high of $72.79, confirming the growing investor interest in altcoins. Optimism has increased and fund managers have built confidence in altcoins since the SEC approved the Bitcoin and Spot Ether ETFs in January.
As a result of this bold move by Canary Capital, LTC becomes more accessible to investors who are reluctant to manage digital assets themselves. The decision to focus on Litecoin as an ETF comes from the token’s robust performance and longevity in the blockchain space. Litecoin is known for its reliability, having maintained a 100% uptime since its launch in 2011.
Aiming to provide investors with options other than owning Litecoin, this exchange-traded trust fund also provides access to traditional securities platforms. New ETFs could increase liquidity and help stabilize the prices of the underlying assets. The company aims to expand its crypto-related services, but getting approval from the SEC remains a question since the watchdog classifies most crypto assets as securities, with the exception of Bitcoin and Ethereum. It’s opaque.
The Litecoin network has experienced significant growth through recent major partnerships. Grayscale Investments launched the Litecoin Trust, a digital currency investment product, for clients and currently manages approximately $140 million in net assets. For that matter, Fidelity Crypto has provided Litecoin services to clients in the past.
Another notable example is Venmo, a payment service owned by PayPal Holdings Inc. Venmo has partnered with MoonPay to enable U.S.-based customers to purchase cryptocurrencies such as Bitcoin, Ethereum (ETH), and Litecoin.
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