Litecoin Surges Past Ethereum and Stablecoins in Payment Preferences

Litecoin has solidified its position as the second most popular cryptocurrency for payment processing, according to data from Lithuanian payment processor CoinGate. The cryptocurrency captured 14.5% of all crypto payments in July, surpassing Ethereum and major stablecoins USDC (14%) and USDT (12.2%).

This achievement is a testament to Litecoin's technical advantages, which enable faster transaction speeds and lower fees compared to Bitcoin. Despite its lower market capitalization ranking, the network's efficiency in settlement processing has consistently positioned it among the most-used cryptocurrencies for actual payments.

The data also revealed a significant shift in merchant behavior regarding cryptocurrency settlements, with 40.9% of merchants choosing to retain received payments in digital assets rather than converting to traditional currency in the first half of 2025. This trend suggests businesses are becoming more comfortable holding cryptocurrency directly, rather than immediately converting to fiat currency.

Litecoin's price increased over 9% following the release of CoinGate's data, recovering to approximately $119, as market interest in cryptocurrencies showing practical utility beyond speculative trading grew.