Reevaluating the lottery nature of the payment network and the status of Litecoin(LTC)

The Value of Litecoin Based on Payment Trustworthiness

As the cryptocurrency market fluctuates sharply due to AI(AI) and meme(Meme) coins’ short-term surges and declines, investor interest is shifting toward assets with fundamental practicality. Amid these structural changes, Litecoin(LTC) is being reevaluated as a reliable asset that has maintained 100% uptime without a single network interruption for over 14 years.

According to 2025 statistics from the world’s largest cryptocurrency payment processor, Litecoin has surpassed other virtual assets, including Bitcoin, and is recorded as the most used means of actual payment. This indicates that it is performing the functions of currency in the real economy, not just a speculative asset.

Technical Superiority and Payment Efficiency

Litecoin’s high payment share stems from its technological advantages. With an average block creation time of 2.5 minutes—about four times faster than Bitcoin—it offers processing speeds suitable for small transactions with transaction fees below $0.01.

The MWEB(MimbleWimble Extension Blocks) technology introduced in 2022 is regarded as an innovative attempt to balance transaction transparency and user privacy. However, this technology has faced support discontinuation in some exchanges due to conflicts with anti-money laundering()AML( requirements from regulators.

Domestic Market Realities and Its Value as an International Transaction Method

In 2022, major domestic exchanges ceased Litecoin-Won trading due to compliance with the specific Financial Transaction Reports Act. Litecoin’s domestic position, once used as a remittance method for arbitrage between international exchanges, has diminished.

However, Litecoin still maintains demand as a ‘middle bridge’ for fund transfers between overseas trading platforms. Its lower fees and reduced network congestion compared to other remittance methods are reasons for its preference.

Peak Network Security

As of December 2025, Litecoin’s hash rate reached an all-time high of 3.94 PH/s. Mining difficulty also hit a historic peak of 95.33 million, making network attacks astronomically costly and practically impossible to hack.

This robust security is enabled by the unified mining system based on the Scrypt algorithm used by both Litecoin and Dogecoin. Miners can mine both coins simultaneously with one mining rig, and recent price increases in Dogecoin have improved mining profitability.

Spot ETF: Gateway to Institutional Assetization

The long-term trend of Litecoin’s price is expected to be heavily influenced by the approval of spot ETFs. With the continuation of the Trump administration’s deregulation stance, the final approval of spot ETFs in Q1 2026 is highly likely.

Like Bitcoin, Litecoin, which adopts proof-of-work)PoW( and was launched fairly without pre-mining, is likely to be classified as a ‘commodity’ by the U.S. Securities and Exchange Commission. This could lead to large inflows of institutional funds such as pension funds and asset managers via ETFs, which were previously difficult to invest in directly.

However, recent Litecoin ETF launches have shown underperformance compared to other virtual asset ETFs launched in the same period.

Historical Patterns and Investment Strategies

Litecoin has historically shown a ‘late surge’ pattern, with sharp increases occurring after Bitcoin’s bull runs in 2017 and 2021, during the latter stages of Bitcoin’s maturity cycle. The current LTC/BTC price ratio being at a historical low can be interpreted as a technical signal of an upcoming upward trend.

Litecoin often remains in a sideways consolidation phase with little movement for extended periods. During such market conditions, it may be worthwhile to consider strategies that improve capital efficiency through derivatives rather than tying all funds solely to spot assets. However, excessive leverage can significantly increase the risk of losses, so caution is advised.

Ecosystem Limitations and Structural Risks

Unlike platforms like Ethereum and Solana, Litecoin’s network has almost no active decentralized finance)DeFi( or non-fungible token)NFT( ecosystems. This means it cannot sustain continuous capital inflows and circulation, indicating a clear limitation in its scalability as a platform.

Litecoin is inherently optimized as a ‘payment method.’ Although there have been attempts to introduce smart contract functionality, fundamental constraints prevent it from catching up with ecosystems of competing platforms that have already established dominance.

In 2017, Litecoin founder Charlie Lee announced that he sold all his Litecoin holdings and donated the proceeds. While he explained this as a decision to achieve decentralization and resolve conflicts of interest, the market perceived it as a negative signal, which significantly impacted investor sentiment afterward.

Price Outlook and Turning Points

As of January 6, 2026, Litecoin is trading at $83.61, with a 24-hour range of $82.09–$84.86. The one-year cumulative return is -27.77%, with a circulating market cap of $6.41B, and an all-time high of $410.26.

In the short term, it is expected to find support in the $80–$95 range, showing a gradual upward trend. Increased demand at year-end and buying at lower prices could test resistance levels.

In the medium to long term, the first half of 2026 is projected to be a major inflection point for Litecoin’s price. Expectations of institutional inflows driven by the approval of spot ETFs could push the price to $130–$220. When Bitcoin’s market cap adjusts and altcoin season begins, breaking previous highs and reaching $300 in the second half of 2026 are also possible scenarios.

Conclusion

Litecoin reaffirms its intrinsic value amid the volatile market of 2025, thanks to its fast transaction speeds and robust network stability. The approval of spot ETFs in 2026 could be a turning point to eliminate undervaluation and drive a breakout beyond previous highs. It is time to pay renewed attention to Litecoin, often called the ‘digital silver.’

This post is not investment advice. Cryptocurrencies are highly volatile and can result in loss of principal. All investment decisions are the responsibility of the investor.