Is This Unexpected Cryptocurrency Poised for a Stunning Surge in 2025?

The moment has arrived to scout for a hidden gem or an undervalued digital asset poised for significant gains in 2025. Ideally, you want to pinpoint a cryptocurrency that’s currently priced far below its historical peak, bolstered by a persuasive investment narrative for the forthcoming year, and with a notable history of substantial price surges.

A crypto asset matching these criteria is Litecoin (LTC -2.01%). Despite a modest uptick of 42% this year, Litecoin’s showing could turn a corner with far stronger results anticipated in 2025. Here are the reasons.

The “Digital Silver” Proposition

As alluded to by its moniker, Litecoin can be regarded as a streamlined variation of Bitcoin (BTC -1.13%), sharing a lot of the latter’s fundamental traits due to its similar coding origin. This includes the mining process, a recurring halving event, and a limited circulating supply that offers comparable scarcity nuances.

The vision behind Litecoin was to craft a Bitcoin alternative that would facilitate quicker, more affordable, and streamlined transactions. To put it in analogy, if Bitcoin is synonymous with “digital gold,” then one could consider Litecoin the “digital silver.” Over the years, despite waning in prominence, Litecoin still upholds a position within the top 25 cryptocurrencies by market capitalization, boasting a near $8 billion valuation.

Spot ETF Narrative

These characteristics gain even more significance as we transition toward 2025. Seen as substantially less speculative in comparison to other cryptocurrencies, Litecoin has carved a niche for itself as a commodity rather than a security, which, in theory, streamlines its eligibility for regulatory approvals of related financial products.

Image credit: Getty Images.

As of late, the assumption is growing that Litecoin might be next in line for a spot exchange-traded fund (ETF). In contrast to other leading cryptos frequently mentioned in the context of a spot ETF, like XRP and Solana, which are entangled with greater regulatory uncertainties, Litecoin is much less encumbered by such concerns and is closer to achieving U.S. SEC consent.

Following Canary Capital’s SEC filing in October for a Litecoin spot ETF, we observed a sharp 10% upswing in Litecoin’s market price. Augmented by the cryptocurrency-friendly stance of the Trump administration, we might witness the greenlighting of such an ETF by mid-2025, if not earlier, potentially catalyzing Litecoin’s value. This mirrors the trends seen with the introduction of spot Bitcoin ETFs.

Assessing Litecoin’s Breakout Potential

The pertinent question remains: What level of breakout potential can Litecoin achieve? Currently trading around $100, it sits more than 75% below its peak of $412. This is pertinent because other prominent cryptocurrencies, like Bitcoin, are in the vicinity of their own peak prices, suggesting that Litecoin may have considerable scope for growth.

The progression of Litecoin during the past crypto bull market period of 2020-2021 is noteworthy. With its valuation at about $50 in October 2020, it wasn’t much in the spotlight. Nonetheless, by May 2021, Litecoin experienced a meteoric ascent, breaching the $400 threshold, echoing its similar trajectory in 2017. This history underscores Litecoin’s potential for dynamic upswings.

In contemplating Litecoin’s future, the significant correlation between Bitcoin and Litecoin over the last year — which stands staunchly at 0.75 — should not be overlooked. Among major altcoins, only Ethereum demonstrates a stronger correlation, at 0.89, with Bitcoin.

This numerical relationship hints at a high likelihood of Litecoin responding positively to Bitcoin’s market movements over the next year. So, investors bullish on Bitcoin can also place considerable hope on Litecoin’s progress.

Pre-Investment Considerations for Litecoin

Nevertheless, investors should consider why Litecoin is significantly below its historical high, why it has fallen outside the top 20 by market cap, and why it’s underperformed in contrast to Bitcoin this year. It’s possible that Litecoin’s prime days have receded into the past.

Regardless, the allure of unearthing an overlooked gem or spotting a potential high-value investment persists. If the SEC gives the nod to a Litecoin spot ETF in the upcoming year, Litecoin could very well emerge as the breakout star of 2025.