Litecoin (LTC) Could Be the First Breakout Cryptocurrency of 2025

It's time to start looking for an overlooked or undervalued cryptocurrency with the potential for a breakout rally in 2025.

One cryptocurrency that could be poised for a breakout rally in 2025 is Litecoin (LTC 1.38%). Here's why.

Litecoin is a "lite" version of Bitcoin (BTC 0.37%), launched back in 2011 and using much of the same computer source code. As a result, Litecoin shares many of the same 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 circulating coin supply, giving it nearly the same 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 remains one of the 25 largest cryptocurrencies in the world, with a nearly $8 billion market cap.

All these characteristics of Litecoin are especially important now as we head into 2025. That's because Litecoin is typically viewed as considerably less risky than other, more speculative cryptocurrencies. Just like Bitcoin, Litecoin is considered a commodity and not a security. Theoretically, that makes it much easier for regulators to approve new products linked to Litecoin.

In fact, the growing consensus now is that Litecoin will be the next cryptocurrency to get a spot exchange-traded fund (ETF). As Bloomberg highlighted earlier this month, several other top cryptocurrencies often mentioned as potential spot ETF candidates — such as XRP and Solana — may still carry too much regulatory risk. In contrast, Litecoin is basically free and clear of any regulatory concerns and has a much clearer path to Securities and Exchange Commission (SEC) approval.

Back in October, crypto investment firm Canary Capital filed with the SEC for a spot Litecoin ETF, and the price of Litecoin spiked by 10%. Given all the pro-crypto optimism surrounding the Trump administration, we could potentially see a spot Litecoin ETF approval by mid-2025, if not sooner.