Litecoin Finds Stability as New Layer-2 Initiative Expands Use Case Potential

Litecoin Holds Steady at Support as New Layer-2 Network Aims to Revive Utility Narrative

Litecoin (LTC) is finding footing near the $89 level, resisting deeper losses despite bearish chart patterns and a cautious market backdrop. The asset’s resilience comes as developers introduce new functionality designed to modernize the Litecoin ecosystem.

While technical indicators continue to show a head-and-shoulders formation, traders are watching the $89–$90 zone closely, which has emerged as a crucial support level during recent volatility.

In parallel, broader crypto sentiment remains soft. The CoinDesk 20 Index fell roughly 1%, with ongoing macroeconomic uncertainty and a weakening dollar keeping risk appetite in check.

Still, Litecoin is benefiting from fresh infrastructure developments. Lunar Digital Assets this week launched LitVM, a zero-knowledge Layer-2 built using BitcoinOS and Polygon’s CDK. The upgrade adds EVM smart contract support and enables native swaps with Bitcoin and Cardano, offering a path for Litecoin to enter the decentralized finance (DeFi) conversation.

Adding to its exposure, financial services provider IG Group has listed LTC for trading, expanding its reach to new retail audiences.

While price action remains technically vulnerable, Litecoin’s expanding functionality and increased market access could support longer-term bullish interest — especially if user adoption of LitVM accelerates.