Litecoin Launches Zero-Knowledge Layer-2 Network LitVM – Coincu

Litecoin has made a significant move into the smart contract space with the unveiling of the LitVM network, an innovative Layer-2 solution.

Lunar Digital Assets launched the LitVM zero-knowledge Layer-2 network for Litecoin on May 31, 2025, supported by the Litecoin Foundation. The LitVM launch signifies Litecoin’s entry into DeFi and Web3, powered by BitcoinOS and Polygon CDK, aiming to support smart contracts and cross-chain activity.

LitVM Signals Litecoin’s Foray into DeFi and Smart Contracts

Lunar Digital Assets developed the LitVM network to incorporate EVM-compatible zero-knowledge rollups into the Litecoin ecosystem. This Layer-2 network endeavors to enhance Litecoin’s functionality, enabling smart contracts and cross-chain liquidity. Charlie Lee and Edan Yago prominently endorsed the project.

The LitVM network facilitates smart contract deployment and cross-chain capabilities. This innovation opens new opportunities in the DeFi and Web3 sectors for Litecoin, promoting significant growth potential. EVM compatibility is central to attracting Ethereum-based developers to Litecoin.

Charlie Lee, Creator, Litecoin, remarked: “Since creating Litecoin in 2011, our focus has been security and reliability. This Layer 2 pushes Litecoin into the smart contract era while preserving those principles.”

Charlie Lee remarked on the enduring focus on Litecoin’s security and reliability while embracing new capabilities. The launch received positive feedback from the community and was viewed as an advancement in Litecoin’s technological framework, as echoed by Edan Yago during the Litecoin Summit.

LitVM Sets Precedent as First UTXO-Based Zero-Knowledge Layer-2

Did you know? LitVM’s launch as the first zero-knowledge Layer-2 solution on a UTXO-based chain sets a new precedent for Bitcoin-adjacent assets and could influence future BTC Layer-2 research.

According to CoinMarketCap, on May 31, 2025, Litecoin (LTC) traded at $86.81, with a market cap of $6.59 billion. The 24-hour trading volume was $578.65 million, showing a decline of 9.35%. Price changes over 24 hours and 90 days were noted at -3.46% and -28.78%, respectively.

The Coincu research team highlights how LitVM could enhance Litecoin’s competitive edge in the Layer-2 ecosystem and support future decentralized innovations. Historical trends suggest increased developer engagement due to cross-chain capabilities could result in a diversified token usage on the network.