Litecoin Hits $73 for the First Time Since July. Why Is Price Surging?

Litecoin (LTC), a peer-to-peer cryptocurrency forked from the Bitcoin network, seems to have captured investors’ attention in recent weeks.

According to on-chain data from the blockchain market intelligence firm Santiment, the asset is experiencing a mini-run. LTC rallied above $73 for the first time since July, indicating a mid-sized breakout from Bitcoin and altcoins since the spring. 

📈 Litecoin is enjoying a nice mini run, jumping above $73 for the first time since July. This is its first mid-sized breakout from Bitcoin and altcoins since the spring. Two major factors are:

⚡️ LTC's continued rise of on-chain transaction volume, which has nearly crossed $4B… pic.twitter.com/oSKt7mRC2L

— Santiment (@santimentfeed) October 17, 2024

Over the past seven days, LTC witnessed a notable spike. The asset rose by 10.62% to trade at a high of $75. At press time, LTC was exchanging hands at $72.06, representing a nearly 2% increase in the last 24 hours.

Factors Driving Litecoin’s Surge

The asset’s performance is attributed to several factors including a surge in its on-chain transactions nearing $4 billion. Market data analytics provided by Santiment shows that on-chain volume for Litecoin surged to a 16-month high of about $3.97 billion, the highest since June 3, 2023.

The spike in Litecoin’s on-chain traded volume coincided with a notable surge in its online discussion across different social platforms. Of all crypto discussions, those related to Litecoin accounted for 1.08%, the highest since April 1, 2024. 

Additionally, Santiment noted the growing retail interest in Litecoin, driven by ongoing developments and initiatives from its team.

Earlier this week, crypto investment firm Canary Capital filed the first Litecoin exchange-traded fund (ETF) with the US Securities and Exchange Commission. This product, if approved, can push institutional adoption of Litecoin and even help this coin to see a further rise in the market. 

Notably, Litecoin has had its share of bullish performance since the start of the year. In July, the network processed over $2.80 billion in daily large transactions surpassing most layer 1 blockchains.

Will Litecoin Continue Its Hotstreak Through October?

Optimism is growing among analysts as Litecoin capitalizes on additional momentum in the crypto market. According to data from CoinCodex, LTC will be able to rise to $100. The firm highlighted that the asset could experience this surge towards the end of the month.

Additionally, several Litecoin community members are enthusiastic that LTC will see impressive price performance. Data from CoinMarketCap revealed that 83% of the  community was bullish about the asset’s surge while 17% of them were skeptical of this rise.