Litecoin (LTC), a Bitcoin hard fork, has become one of the biggest gainers in the cryptocurrency market. On December 18, 2024, LTC surged over 5% in the last 24 hours, defying declines in the two leading cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH), which saw losses of 3% and 5%, respectively.

This rally has caught the attention of many investors, as Litecoin’s market capitalization has now reached $9.23 billion, with a trading volume that surged by 90%, hitting $1.89 billion. Litecoin’s impressive price movement stands in stark contrast to Bitcoin and Ethereum, which have been struggling with recent price declines.

ETF Hopes Fuel Litecoin’s Surge

The driving force behind Litecoin’s remarkable rally appears to be renewed optimism about the potential approval of spot exchange-traded funds (ETFs) linked to LTC. According to Bloomberg ETF analyst Eric Balchunas, Litecoin has a strong chance of gaining approval for a spot ETF before other prominent cryptocurrencies like Solana (SOL) and XRP (XRP).

Balchunas emphasized that Litecoin’s status as a hard fork of Bitcoin might allow it to bypass some of the regulatory hurdles that other cryptocurrencies face. Since Litecoin is often regarded as a commodity, it could be subject to less stringent scrutiny, making it an attractive option for ETF approval.

Litecoin’s approval for an ETF could further increase its legitimacy in the eyes of institutional investors, leading to increased demand and driving its price higher.

Litecoin’s Recent Momentum

Litecoin has seen significant price movement over the past month, with the coin jumping 31%, outperforming Bitcoin and Ethereum in the process. This upward momentum comes after a broader rally triggered by political events, such as Donald Trump’s presidential victory, which helped fuel optimism across the cryptocurrency market.

Social media sentiment surrounding Litecoin has also been on the rise, according to social intelligence platform Lunar Crush. Mentions of Litecoin reached new heights in November 2024, signaling growing retail interest. The coin’s popularity appears to be increasing as more investors look to capitalize on its potential for growth.

Open Interest and Leverage Show Growing Investor Confidence

The growing interest in Litecoin is also reflected in its Open Interest, which surged 17% in the last 24 hours and has risen by 48% over the past month. Open Interest refers to the total number of outstanding contracts or positions in the market, indicating increased activity and investor engagement.

Additionally, approximately 72% of traders on Binance were holding long positions on Litecoin, according to the Long/Short Ratio. This suggests that a significant portion of investors is betting on continued upward movement in LTC’s price.

What This Means for Litecoin’s Future

The positive momentum surrounding Litecoin, driven by ETF hopes and increasing social media buzz, could set the stage for further gains in the near future. If the anticipated approval of an LTC-linked ETF materializes in 2025, it could provide a substantial boost to Litecoin’s price and solidify its place in the broader cryptocurrency ecosystem.

At the time of writing, Litecoin was trading at $122.03, up 4.70% in the last 24 hours. Investors are watching closely to see if this upward trend continues, especially as Litecoin heads into a new year with strong momentum.