Litecoin Surges to #2 in Crypto Payments—Here’s Why It Matters (CoinGate Data)

Move over, Bitcoin—Litecoin’s grabbing the payments crown. According to CoinGate’s latest data, LTC just leapfrogged rivals to become the second-most-used crypto for real-world transactions. No fluke: this silver-to-Bitcoin’s-gold narrative just got serious.

The underdog’s edge: speed, cost, and merchant love

While Bitcoin maxis obsess over store-of-value, Litecoin’s quietly doing the dirty work. Faster confirmations? Check. Lower fees than ETH? Obviously. A network that doesn’t treat small businesses like testnet volunteers? Bingo.

Payments are back—and crypto’s playing for keeps

Remember when ‘digital cash’ was crypto’s whole pitch? After years of DeFi ponzi schemes and NFT rug pulls, actual utility is making a comeback. Litecoin’s rise hints at a market that’s—gasp—maturing beyond speculative gambling.

The cynical footnote

Let’s be real: Visa still processes more before breakfast than crypto does all year. But for merchants tired of paying 3% to banks who’d sell their firstborn for a basis point? LTC’s looking spicy.

What Is CoinGate?

CoinGate is a Lithuanian-based crypto payments processor that enables merchants to accept a variety of digital currencies. These include Bitcoin, Ethereum, Litecoin, and several stablecoins. The platform offers tools for both online and offline merchants to accept crypto payments securely and conveniently.

July Rankings Show Litecoin on the Rise

In a recent post on X (formerly Twitter), CoinGate shared updated statistics for July showing how customer preferences have shifted in the world of crypto payments. According to the data, Bitcoin continues to lead with a 22.9% share of all payments.

However, the biggest change comes just beneath it — Litecoin now holds a 14.5% share, placing it second overall. This is a significant jump, especially considering that LTC is only the 19th largest cryptocurrency by market capitalization.

Following Litecoin, USDC took the third position with a 14% share, narrowly ahead of USDT (Tether) at 12.2%. TRON (TRX) came in close behind with a 12.9% share of total payments.

Why Litecoin Is Gaining Traction

Despite not being among the top 10 cryptocurrencies by market cap, Litecoin has consistently been one of the most used coins for real-world payments. This is largely because of its fast transaction times and low fees, which make it an ideal choice for quick settlements.

In simple terms, users and businesses prefer Litecoin because it works well for fast, everyday transactions. This practical utility is helping LTC stay relevant, especially on platforms like CoinGate, where speed and cost are major factors.

Litecoin Was Also a Top Performer in H1 2025

This isn’t the first time Litecoin has stood out in CoinGate’s data. A report from the platform covering the first half of 2025 (H1 2025) showed similar results. During that period, Litecoin made up 13.6% of all crypto payments, placing it ahead of ethereum (13.5%) but still behind Bitcoin (23.3%) and Tron (21.6%).

These numbers show that Litecoin’s popularity is not a one-time event but part of a consistent upward trend in the crypto payments space.

More Merchants Now Choose to Hold Crypto

Another important insight from CoinGate’s recent reports is the growing comfort merchants have with digital assets. In 2024, only about 27% of merchants opted to hold crypto instead of converting it to fiat currency. By H1 2025, that number had jumped to 40.9%.

This increase shows a growing trust in cryptocurrencies as a legitimate FORM of payment and store of value. More businesses are now willing to keep their earnings in crypto, reflecting increased stability and maturity in the sector.

USDC Dominates Merchant Payouts

When it comes to merchant payouts, stablecoins are still the top choice. USDC (USD Coin) leads the pack, likely because of its stability, regulatory compliance, and low volatility. bitcoin is the second most popular payout option.

Interestingly, Litecoin does not appear among the top coins for payouts, suggesting that while users are paying with LTC, merchants may prefer to convert it to more stable assets after receiving it.

Litecoin Price Update

Following the release of this positive data, Litecoin’s price saw a sharp 9% increase, pushing it back to around $119. This price recovery reflects growing investor confidence in LTC, driven by real-world utility and increased adoption in payments.

Final Thoughts

Litecoin’s climb to the number two spot on CoinGate’s platform underscores its strong use case in the crypto payments ecosystem. While many new coins enter the market with hype, Litecoin has continued to prove its value through practical usage.

With fast and inexpensive transactions, it remains a favorite among users looking for reliable payment options. As crypto adoption grows and more merchants accept digital assets, Litecoin’s role could continue to expand in the global economy.