Litecoin Surges 11% on ETF Hopes and Growing Merchant Adoption

Litecoin (LTC) surged nearly 10% in recent trading sessions, reaching a price of $116, according to reports from multiple platforms [1][2]. This upward movement has sparked speculation about the potential for a larger rally, especially in light of broader market gains and increased attention in the cryptocurrency sector. The recent gains come on the heels of a 9.7% price increase over the weekend, as reported by CoinDesk Indices, which also noted that Litecoin contributed to a 0.3% rise in the CoinDesk 20 Index [3].

The rally places LTC among the top-performing large-cap altcoins this week, gaining over 12% in the past 7 days. Behind the momentum lies a combination of strong payment network adoption, technical breakout signals, and growing ETF speculation [1]. Litecoin recently captured 14.5% of all crypto transactions processed by CoinGate in July—leapfrogging popular stablecoins like USDT and USDC [1]. This surge in merchant usage follows LTC surpassing 300 million transactions in 2025 and its integration into Telegram Wallet, making it increasingly accessible for global microtransactions [1].

The impact is real: merchants are now holding 40.9% of their crypto revenue in Litecoin, up from just 27% in 2024 [1]. This shift away from instant conversion reduces sell pressure and could help stabilize price action during volatile cycles. The growing institutional interest is also evident. MEI Pharma’s $100 million Litecoin treasury allocation has bolstered market confidence, positioning LTC as a viable corporate treasury asset [1].

While the SEC recently postponed its decision on Grayscale’s LTC ETF application to October 2025, Bloomberg analysts still assign a 90% chance of eventual approval [1]. The regulatory backdrop remains favorable too, with the CFTC classifying Litecoin as a commodity, reducing legal uncertainty and helping it stand out in the ETF approval race [1].

Litecoin broke above key levels including its 7-day SMA ($109.98) and the pivot point at $117.61, signaling a momentum shift [1]. With RSI at 69.53 and not yet in overbought territory, traders see room for continued upside. However, the MACD histogram shows early signs of bearish divergence, suggesting a possible pullback if volume stalls [1]. Historical patterns show LTC tends to surge during altcoin rotations, and the Altcoin Season Index has risen 51.72% over the past month—creating the perfect environment for breakout attempts [1].

Litecoin’s 11% jump today is more than just a random price spike—it’s supported by real adoption, regulatory momentum, and technical strength [1]. While resistance in the $124–$131 zone may slow immediate gains, staying above $113.24 (23.6% Fibonacci level) could validate this move as the beginning of a larger macro breakout. With ETF hopes alive and payment use cases expanding, Litecoin might finally be ready to reclaim its spotlight in the crypto arena [1].

Source:

[1] CoinCentral - https://coincentral.com/litecoin-activity-drops-to-2-year-low-while-remittix-presale-sees-record-daily-volume/

[2] Coinbase - https://www.coinbase.com/en-gb/price/litecoin

[3] Economic Times - https://m.economictimes.com/crypto-news-today-live-04-aug-2025/liveblog/123081462.cms