While Bitcoin has captured most of the headlines with its historic push past $24,000, Litecoin has been quietly staging one of the most impressive rallies of the 2020 crypto bull run. As of December 19, 2020, Litecoin has surged 40% in just one week and a staggering 168% over the past 90 days, trading at approximately $113 and showing no signs of slowing down.
TL;DR
- Litecoin gained 40% in one week and 168% over 90 days as of December 19, 2020
- LTC was trading at $113 with a market cap of roughly $8 billion
- Total crypto market spot volume hit $531.4 million on Kraken alone
- Bitcoin’s 65% market dominance suggests room for altcoin catch-up
- Ethereum, XRP, and Bitcoin Cash also posted strong weekly gains
Litecoin’s remarkable performance places it among the top-performing major cryptocurrencies of the fourth quarter. At $113 per coin, LTC has more than doubled from its September levels near $43. The rally accelerated dramatically in mid-December as Bitcoin’s own surge past $20,000 — and then $24,000 — lifted sentiment across the entire market.
Kraken Data Reveals Surging Volume
Kraken’s daily market report for December 19 revealed that Litecoin was the fifth most-traded asset on the exchange, with $34.1 million in spot volume — more than Chainlink, Cardano, and Polkadot. The exchange processed $531.4 million in total spot volume, a notably high figure for a weekend session, underscoring the intensity of current market activity.
Litecoin’s 9.9% gain on December 19 alone was the strongest performance among the top ten cryptocurrencies by market cap that day, outpacing Bitcoin’s 3.1% rise, Ethereum’s modest 0.7% uptick, and Bitcoin Cash’s 1.2% advance. The data confirms that capital is beginning to rotate from Bitcoin into major altcoins — a pattern historically associated with the later stages of crypto bull markets.
The Broader Altcoin Rally
Litecoin’s surge is part of a broader altcoin rally that has seen significant gains across the board. Ethereum was trading at $646, up 9% for the week and 26% over 30 days, with 90-day gains exceeding 90%. XRP held strong at $0.57 with a 10.9% weekly gain and an extraordinary 146% over three months. Bitcoin Cash traded at approximately $350, gaining 25% over the week and 62% over 90 days.
The combined market cap of all cryptocurrencies has swelled well past $640 billion, with Bitcoin alone commanding a $443 billion valuation. Bitcoin’s market dominance of approximately 65% suggests that while BTC is leading the charge, altcoins are beginning to close the gap — a dynamic that has historically preceded explosive altseason periods.
Record Derivatives Activity
The rally has been accompanied by extraordinary activity in derivatives markets. According to Coinalyze data, Friday December 18 saw $80 billion in futures market volume and $10 billion in spot market volume. Over $800 million in positions were liquidated that day alone, with more than $1 billion in short positions wiped out over a two-day period. This aggressive deleveraging of bearish bets has created additional upward pressure across the market.
The liquidation cascade hit short sellers particularly hard, as many had positioned themselves expecting a reversal at the $20,000 or $22,000 resistance levels. Instead, Bitcoin’s relentless climb through $24,000 forced a chain reaction of forced buys that benefited altcoins like Litecoin through increased market liquidity and improved sentiment.
Institutional Flows Benefit the Entire Market
The rally in Litecoin and other major altcoins is not happening in isolation. Growing institutional interest in Bitcoin — driven by concerns about inflation, fiat currency debasement, and the search for alternative stores of value — has elevated the entire cryptocurrency asset class. As institutional capital enters through Bitcoin, it creates a halo effect that raises the profile and credibility of established altcoins like Litecoin, Ethereum, and Bitcoin Cash.
Gavin Smith, managing partner at Panxora Crypto Hedge Fund, noted in Finder’s recent survey that Bitcoin’s use as a hedge against monetary expansion is attracting both retail and institutional adopters, with the trend expected to continue. The panel of 47 experts surveyed found that 58% expect the current bull run to persist through at least the second half of 2021.
Why This Matters
Litecoin’s 168% gain over 90 days is a powerful signal that the current crypto rally extends far beyond Bitcoin alone. The combination of rising volumes, cascading short liquidations, and growing institutional participation suggests that the market is entering a phase where capital flows broaden from BTC into major altcoins. For Litecoin specifically, its strong fundamentals as a payments-focused blockchain with low fees and fast confirmation times make it a natural beneficiary of this rotation. If historical patterns hold, the current rally could have significant room to run.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always do your own research before making investment decisions.