Litecoin experienced a mini-run, with the price rising above $73 for the first time since July. Over the past week, crypto assets have returned 12%.
This marks the first significant breakout from Bitcoin and altcoins since the spring.
Is Litecoin ready for a comeback?
Two key factors appear to be driving this bullish trend in Litecoin, according to Santiment’s latest analysis.
Litecoin has been on a roll, 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
First, Litecoin trading volume this week approached $4 billion, the highest level since June 3, 2023. Second, social dominance is also increasing, with 1.08% of all cryptocurrency discussions now related to Litecoin, the highest level since April 1, 2024.
This spike in both price and engagement indicates growing interest in Litecoin due to increased network activity and renewed attention from retail traders.
Alongside the price surge, Litecoin recently celebrated its 13th anniversary on October 7th and completed a record 77 million transactions this year.
Litecoin, which once occupied a significant position among the top 10 cryptocurrencies, now ranks as the 26th digital asset with a market capitalization of $5.41 billion, according to data compiled by CoinGecko. Despite this drop in rankings, Litecoin seems poised for a comeback.
Could Litecoin’s resurgence attract institutional investors?
Driving this momentum is potential institutional demand, which prompted Canary Capital Group to apply for a Litecoin ETF. Canary Capital Group is a newly formed investment firm focused on digital assets, founded by former Valkyrie Funds co-founder Steven McClurg.
The company recently filed a similar initial Form S-1 with the U.S. Securities and Exchange Commission (SEC). If approved, the ETF will provide direct exposure to Litecoin for both institutional and retail investors.
In discussing the potential institutional adoption of LTC, Canary Capital told Fox Business:
“As one of the longest-running blockchains with 100% uptime since its inception, Litecoin has a proven track record of security and reliability in critical enterprise-grade use cases. With its strong foundation, Canary believes it continues to play a leading role in the broader cryptocurrency ecosystem, which could make Litecoin attractive to a wider range of institutional investors. There’s
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