As the crypto market anticipates the potential approval of a spot Bitcoin ETF, experts are speculating on the ripple effects it could have on related digital assets, particularly Litecoin (LTC). Shan Belew, a prominent Litecoin supporter and engineer, recently expressed his belief that Litecoin stands to gain from the expected market surge.
Belew’s optimism stems from the close relationship between Bitcoin and Litecoin, with the latter often considered the silver to Bitcoin’s gold. In a social media post, Belew suggested that Litecoin’s network is already factoring in significant price increases, potentially into the thousands, in light of the ETF developments.
A Bitcoin ETF will be marketed heavily next year once the ETF is approved. The digital asset that is most closely related to Bitcoin is Litecoin. Litecoin's network is already pricing in Litecoin into the thousands. pic.twitter.com/h9Aooqo8kN
— Shan Belew Ⓜ️🕸 (@MASTERBTCLTC) December 22, 2023
Litecoin, established in 2011, has been a pioneer in the cryptocurrency space. It reached its zenith in early 2021, with a token price of approximately $410.26 and a market cap nearing $25 billion. The network has continued to make headlines, most notably with a recent ‘whale activity’ involving the transfer of 423,003 LTC, valued at around $29.9 million.
The Growing Utility of Litecoin’s Network
Such large-scale transactions often indicate impending market movements, as major investors position themselves strategically. The network’s achievements don’t stop there; Litecoin has surpassed 10 million ordinals and consistently handles 1 million transactions daily. This increased activity suggests a growing user base and enhanced network utility, both of which are essential for the asset’s valuation.
The community is abuzz with the possibility that Litecoin’s successes could pave the way for its own ETF, which would be a significant endorsement from Wall Street and could lead to an influx of investment.
At the time of writing, Litecoin is trading at $71, reflecting a 1.90% rise over the past day. However, the weekly performance shows a slight decline of 1.09%, despite a 5% increase over the past month. With a market cap of $5.2 billion, Litecoin’s recent market behavior has been relatively subdued, yet the prospect of an ETF could change the trajectory of this long-standing cryptocurrency.