Litecoin Now Processes 2.5x Its Market Cap as Transaction Speed Beats Bitcoin and Ethereum

Source: CoinEdition Original Title: Litecoin Now Processes 2.5x Its Market Cap as Transaction Speed Beats Bitcoin and Ethereum Original Link: https://coinedition.com/litecoin-now-processes-250-of-its-market-cap-in-daily-volume/ Litecoin has quietly achieved a massive utility milestone, outpacing both Bitcoin and Ethereum in a critical economic metric: transaction speed. According to recent network data, Litecoin is now processing on-chain transfers valued at over 250% of its $6.2 billion market cap, a ratio that eclipses the “Store of Value” giants.

Key Metrics

• On-chain volume efficiency: Litecoin is processing on-chain volume equivalent to 250% of its market cap, surpassing both Bitcoin and Ethereum in relative usage efficiency.
• Average transaction size: Litecoin transaction sizes have jumped to $86,800, signaling that institutional players are utilizing the network for high-value settlement rather than retail micro-transactions.
• MWEB adoption: Around 388,000 LTC is now held in shielded transactions through Litecoin’s MimbleWimble Extension Blocks (MWEB).

Development Updates and Layer-2 Progress

Network usage gains coincide with ongoing technical development. The Litecoin Foundation-backed LitVM project, a Layer 2 rollup, aims to introduce Ethereum-compatible smart contracts to the Litecoin network. According to project details, LitVM’s testnet is currently active, with a mainnet launch targeted for early 2026. The system is intended to support decentralized applications and cross-chain functionality without altering Litecoin’s base layer.

Despite increased on-chain activity, Litecoin’s market price has remained stable. At the time of writing, Litecoin was trading at $80, recording a 1.09% change over the past 24 hours. The trading volume was recorded at $338.4, which was an increase of 34.09%.

Index ETF Inclusion Adds Institutional Context

Litecoin has been included in the Bitwise 10 Crypto Index ETF ($BITW). The fund began trading on NYSE Arca on Dec. 9, 2025, and tracks the top 10 cryptocurrencies by screened market capitalization.

What this means:

• $BITW tracks the top 10 cryptocurrencies by screened market cap
• Litecoin holds a roughly 0.26% allocation of the ETF, while Bitcoin and Ethereum carry larger weights
• The index rebalances monthly and applies liquidity, custody, and regulatory screens, offering indirect exposure to included assets

This ETF inclusion ensures passive inflow from Wall Street and institutional investors, providing additional support for Litecoin’s long-term adoption despite stagnant price action at $80.