Litecoin’s transaction speed surpasses Bitcoin and Ethereum, with its trading volume reaching 2.5 times its market capitalization.

Litecoin has quietly achieved a significant utility milestone, surpassing Bitcoin and Ethereum in a key economic metric—transaction speed. According to the latest network data, Litecoin currently processes on-chain transfer amounts exceeding 250% of its $6.2 billion market capitalization, a ratio far surpassing these two "store of value" giants.

The increase in transaction activity is partly attributed to a rise in high-value transfers. Litecoin's average transaction amount has exceeded $86,800, leading both Bitcoin and Ethereum in this metric during the same period.

Meanwhile, usage of Litecoin's MimbleWimble Extension Block (MWEB) continues to grow. Currently, approximately 388,000 Litecoin (LTC) are held in shielded transactions, approaching the target previously mentioned by the official Litecoin Foundation account.

Related:Litecoin launches ZK Layer-2 chain LitVM at annual summit in Las Vegas

Development Progress and Layer 2 Advancements

The growth in network usage goes hand in hand with ongoing technological development. The LitVM project, supported by the Litecoin Foundation, is a Layer 2 Rollup designed to bring Ethereum-compatible smart contracts to the Litecoin network. According to project details, the LitVM testnet is currently live, with the mainnet scheduled for launch in early 2026. The system aims to support decentralized applications and cross-chain functionality without altering Litecoin's base layer.

Despite the increase in on-chain transaction activity, Litecoin's market price has remained stable. As of press time, Litecoin is trading at $80, up 1.09% in the past 24 hours. Trading volume stands at $338.4 million, an increase of 34.09%.

Inclusion in Index ETF Adds Institutional Context

A report shared by Crypto Miners provides further context, noting that Litecoin has been included in the Bitwise 10 Crypto Index ETF ($BITW). The fund began trading on the New York Stock Exchange Arca on December 9, 2025, tracking the top ten cryptocurrencies by market capitalization.

Litecoin accounts for about 0.26% of the ETF's asset allocation, while Bitcoin and Ethereum have higher weightings. The index is rebalanced monthly and applies liquidity, custody, and regulatory screening criteria, thereby providing indirect investment opportunities in the included assets.

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