Now is the moment to search for a hidden or undervalued digital currency that might experience an impressive surge in 2025. Ideally, you should seek out a cryptocurrency that’s currently priced well below its peak and possesses a substantial investment thesis for the forthcoming year. It should also demonstrate a history of dynamic price swings.
A cryptocurrency that ticks these boxes is Litecoin(CRYPTO: LTC). Despite Litecoin’s modest 42% increase this year, it heralds the potential for a far more significant performance in 2025. Here’s the rationale.
As implied by its name, Litecoin is a streamlined variant of Bitcoin(CRYPTO: BTC). Launched in 2011, it utilizes much of the same codebase that birthed Bitcoin. Consequently, Litecoin mirrors many attributes of Bitcoin, such as the way it’s mined, its four-yearly halving, and its limited coin circulation that parallels Bitcoin’s scarcity.
The vision behind Litecoin was to create a version of Bitcoin that excelled in speed, cost-efficiency, and effectiveness. If one views Bitcoin as “digital gold,” then Litecoin assumes the role of “digital silver.” Despite some loss of radiance over the years, Litecoin remains a top crypto contender, residing within the top 25 cryptocurrencies by market capitalization, close to $8 billion.
These attributes become increasingly relevant as we approach 2025. Litecoin is commonly seen as a lesser risk compared to other speculative digital currencies. Like Bitcoin, Litecoin is categorized as a commodity, not a security, simplifying regulatory endorsement for linked products.
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The current discussion inclines towards the likelihood of Litecoin being the next to get an exchange-traded fund (ETF) specific to a singular cryptocurrency. As per a Bloomberg feature earlier this month, while other leading cryptocurrencies like XRP and Solana might carry too much regulatory baggage for an ETF, Litecoin stands relatively free from regulatory hurdles and is on a clearer path to getting SEC endorsement.
Back in October, a spot Litecoin ETF application by Canary Capital sparked a 10% rally in Litecoin’s price. Given the existing pro-cryptocurrency sentiments within the Trump administration, it is feasible to anticipate an SEC approval for the Litecoin ETF by mid-2025, potentially earlier, which could catalyze a significant price surge for Litecoin, emulating the patterns seen with recent spot Bitcoin ETF launches.
A critical consideration is the potential growth ceiling for Litecoin. The cryptocurrency hovers around $100, marking a 75% downtrend from its peak of $412. This is crucial since it suggests Litecoin has considerable headroom for growth, unlike other top-tier cryptocurrencies that are nearing or have breached their all-time highs. Litecoin’s history also favors this argument, with two notable surges to the $400 threshold, once in 2017 and then during the 2020-2021 crypto boom when initiating from $50 in October 2020 to surpassing $400 by May 2021; evidence of Litecoin’s significant boom capability.
As we ponder Litecoin’s prospects in 2025, it’s insightful to observe the correlation between Bitcoin and Litecoin. Over the previous year, their correlation has stood at a strong 0.75, with Ethereum being the only other prominent alternative cryptocurrency with a higher correlation at 0.89 with Bitcoin. This suggests a high likelihood of Litecoin’s price trajectory following Bitcoin’s movements. If your anticipation is for Bitcoin’s value to surge in the upcoming year, it’s conceivable that Litecoin could gain from this trend too.
Yet, it’s important to consider why Litecoin is considerably below its highest value, why it has slipped from the top 20 cryptocurrencies by market cap, and why it has trailed behind Bitcoin this year. It’s possible that Litecoin’s prime days are behind it.
Nonetheless, discovering a forgotten treasure or stumbling upon a markedly undervalued investment is always captivating. If a spot Litecoin ETF wins SEC approval in the coming year, Litecoin could enjoy the status of being the leading breakout cryptocurrency of 2025.
Before investing in Litecoin, remember this:
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