Ethereum News Today: Litecoin Surpasses Ethereum in Crypto Payment Share with 14.5% in July

Generated by AI AgentCoin World
Tuesday, Aug 5, 2025 5:46 am ET1min read
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Aime RobotAime Summary

- Litecoin surged to second in crypto payments with 14.5% share in July, outpacing Ethereum and major stablecoins per CoinGate data.

- Bitcoin retained dominance at 22.9% share, while Litecoin's faster speeds and lower fees drove adoption over rivals despite lower market cap.

- Merchant crypto acceptance rose to 40.9% in H1 2025, but USDC remained preferred for settlements due to stability and compliance.

- Litecoin's price jumped 9% after the data release, reflecting growing demand for utility-focused cryptocurrencies over speculative assets.

Litecoin has climbed to second place in crypto payment rankings with a 14.5% share in July, surpassing Ethereum and major stablecoins according to data from Lithuanian payment processor CoinGate. This shift underscores Litecoin’s growing role in real-world transactions and reflects a broader trend of businesses and users favoring altcoins with strong utility beyond speculative investment [1]. Bitcoin maintained its dominant position with 22.9% of all crypto transactions, reaffirming its leadership in the crypto payment ecosystem.

CoinGate’s July data revealed significant changes in user preferences, with Litecoin outpacing USDC (14%) and USDT (12.2%) in terms of transaction share.

Tron
followed closely with 12.9%, rounding out the top five [1]. The rankings highlight a shift away from stablecoins and toward cryptocurrencies with faster processing times and lower fees, which are more practical for everyday payments.

Litecoin’s rise is attributed to its technical advantages over larger rivals, including faster transaction speeds and lower fees compared to Bitcoin and Ethereum. Despite ranking 19th by market capitalization, its efficiency makes it a preferred choice for merchants and consumers engaged in frequent transactions [1]. CoinGate’s data for the first half of 2025 also showed similar trends, with Litecoin holding 13.6% of transaction volume, just ahead of Ethereum’s 13.5%.

The broader adoption of cryptocurrency payments by merchants is also on the rise. Merchant acceptance of digital assets for settlements increased from 27% in 2024 to 40.9% in the first half of 2025 [1]. This suggests growing confidence in the stability and utility of cryptocurrencies for business operations. However, USDC remains the top choice for merchant payouts due to its stable value and regulatory compliance, while Litecoin’s high transaction share does not translate into a strong position in merchant settlement preferences.

The growing popularity of Litecoin in the payment sector has had a measurable impact on its price. Following the release of CoinGate’s data, Litecoin saw a 9% price increase over 24 hours, reaching approximately $119. This movement aligns with increased investor interest in cryptocurrencies that demonstrate real-world utility rather than speculative potential [1].

The development signals a continued diversification of the crypto payment landscape. While Bitcoin remains the dominant player, the second-place finish for Litecoin indicates a maturing ecosystem where multiple assets serve distinct functions. This trend could further accelerate if more businesses adopt cryptocurrencies for daily transactions, especially as blockchain technology continues to improve in scalability and efficiency.

Sources:

[1] https://coinmarketcap.com/community/articles/6891cef16bff854831433129/