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Could this surprising cryptocurrency see an amazing boom in 2025?

It’s time to start looking for an overlooked or undervalued cryptocurrency with the potential for a spike in 2025. In a best-case scenario, this cryptocurrency should trade well below its all-time high and at a compelling price. Investment thesis For next year. It should also have a track record of explosive upward moves.

One cryptocurrency that meets these three criteria is Litecoin (ltc 0.90%). While Litecoin may only rise 42% this year, it could have an even more impressive performance in 2025. Here’s why.

“digital silver”

As its name suggests, Litecoin It is the “Lite” version of Bitcoin (Bitcoin -1.02%). It was launched back in 2011, using much of the same computer source code used to create Bitcoin. As a result, Litecoin shares many of the same basic characteristics as Bitcoin. For example, it is mined just like Bitcoin, has a halving event every four years just like Bitcoin, and has a relatively small supply of coins in circulation, giving it roughly the same type of scarcity as Bitcoin.

Litecoin’s creators envisioned it as a faster, cheaper, and more efficient version of Bitcoin. If Bitcoin is “digital gold,” then Litecoin is “digital silver.” While Litecoin has lost some of its luster over the past decade, it is still one of the 25 largest cryptocurrencies in the world, with a market cap of about $8 billion.

Spot Investing Thesis for ETFs.

All of these characteristics of Litecoin are especially important now as we head into 2025. This is because Litecoin is typically viewed as significantly less risky than other, more speculative cryptocurrencies. Just like Bitcoin, Litecoin is a currency commodity And not a protection. In theory, this makes it easier for regulators to approve new Litecoin-related products.

Image source: Getty Images.

In fact, there is now a growing consensus that Litecoin will be the next cryptocurrency to get an exchange-traded fund (ETF). As Bloomberg pointed out earlier this month, several other cryptocurrencies are often mentioned as potential ETF candidates — such as XRP and Solana – It may still carry a lot of regulatory risk. In contrast, Litecoin is essentially free of any regulatory concerns and has a much clearer path to SEC approval.

Last October, cryptocurrency investment firm Canary Capital filed with the SEC for a spot Litecoin ETF, and the price of Litecoin rose 10%. Given all the pro-crypto optimism surrounding the Trump administration, it’s likely we’ll see immediate approval for a Litecoin ETF by mid-2025, if not sooner. If so, this could cause the price of Litecoin to rise. This is the same pattern we saw with the launch of the new version Spot Bitcoin ETFs.

Does Litecoin have hackability?

The big question, of course, is how hackable Litecoin might be. The coin is currently trading at around $100, 75% below its all-time high of $412. This is important because other cryptocurrencies (like Bitcoin) are either hitting all-time highs or close to hitting all-time highs. Litecoin seems to have more room to run.

It is interesting to consider what happened with Litecoin during the previous crypto process Bull market Gathering again in 2020-2021. In October 2020, Litecoin was trading at around $50 and did not attract much interest from investors. However, within seven months, Litecoin crossed the $400 mark in May 2021. Litecoin saw a similar performance in 2017 when it also reached $400. So, we know that Litecoin definitely has huge upside potential.

Can Litecoin deliver renewed performance in 2025? To answer this question, it is useful to look at the relationship between Bitcoin and Litecoin. Over the past year, the correlation between the two has been strong at 0.75. The only other major altcoin to have a significantly higher correlation during that time is Ethereumwhich has a correlation of 0.89 with Bitcoin.

This tells me that Litecoin has a relatively high probability of tracking any bullish moves that Bitcoin makes over the next 12 months. If you believe that the value of Bitcoin will rise significantly in the next year, Litecoin could continue this journey.

Before you buy Litecoin, read this

Just keep in mind that there is a reason why Litecoin is trading 75% below its all-time high. There’s a reason it’s out of the top 20 cryptocurrencies by market cap. There is a reason why Litecoin has underperformed Bitcoin this year. It may simply be that Litecoin’s best days are already over.

However, it’s always exciting to discover an overlooked gem or find a potential gem Underinvesting. If the SEC approves the Litecoin Spot ETF next year, Litecoin could become the first cryptocurrency to be hacked in 2025.

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