Litecoin Surges After Declared Commodity

With an 11% gain in the last day, Litecoin (LTC) is now the second-best performing cryptocurrency among the top 100. This takes place on the fifth day of weak market activity, during which time Bitcoin and Ethereum saw corrections of less than 2%.

The market capitalization of all cryptocurrencies combined is at $2.79 trillion, down just 0.1% over the past day. The United States Commodities Futures Trading Commission’s recent declaration that Litecoin is a commodity in a lawsuit against cryptocurrency exchange KuCoin is the most notable non-technical event responsible for the cryptocurrency’s surge.

The Securities and Exchange Commission (SEC), which oversees securities and lays more stringent obligations on coin issuers, does not have jurisdiction over Litecoin as a result of this announcement. Being classified as a commodity may make it easier for Litecoin to get support and integrate new features because there will be less concern about the SEC pursuing enforcement actions.

After opening the day at $94.80, Litecoin moved in a range until 6 a.m. UTC, when bulls grabbed control of the markets and drove the coin up to a daily high of $106, after which it marginally corrected to its current level of $104.99.