Litecoin’s consistent YoY growth keeps it among the global top 3 payment methods

Litecoin (LTC) has remained one of the most used cryptocurrencies for payments, according to a seven-year report published by CoinGate. The report places Litecoin among the global top three payment methods on the platform, alongside Bitcoin (BTC) and Tether (USDT).

Following a breakout year in 2021, when processed Litecoin orders increased by 521% compared to 2020, usage has remained strong. In 2024, LTC payments increased by 52.7% year-over-year, marking their second-best year of growth. In 2025 so far (January–August), Litecoin accounts for 13.9% of all payments on CoinGate, behind only BTC (23%) and USDT (21.2%). 

For a brief period in June and July, it rose to second place, overtaking USDT as regulatory implications affected stablecoin usage.

Industries and purchasing behavior

The report shows that web hosting (31.2%), proxies (22.2%), and gaming (19.3%) accounted for nearly three-quarters of all Litecoin transactions in 2025. In the proxy sector specifically, LTC leads the way, with PlainProxies, Ping Proxies, and Thunderproxy all recording a higher share of orders in Litecoin than in Bitcoin, Ethereum (ETH), or stablecoins.

In short, Litecoin has carved out a sweet spot as the currency of choice for customers paying for recurring, digital-first services, making it particularly relevant to merchants in hosting, proxies, and gaming.

In 2025 so far, the average Litecoin order size is €44.5, aligning closely with the price range of hosting subscriptions, proxy packages, and gaming services. The peak was recorded in 2022 at €52 per order, showing that LTC has long been used for mid-sized digital purchases rather than high-value one-offs.

For businesses, this purchasing behavior is notable. Litecoin attracts repeat customers with regular spending patterns, while still supporting larger orders when needed. That mix of flexibility and predictability has contributed to its position as one of the top payment methods.

Geographic distribution

The United States generated the largest share of Litecoin orders in 2025 so far (23.8%), followed by Germany (8%) and Nigeria (7.1%). Other notable markets include the United Kingdom (5.8%), the Netherlands (5%), France (3.7%), and Poland (2.9%).

Merchant settlements show growing confidence

The report also examined how merchants handle the Litecoin they collect. In 2025, 5% of merchants chose to retain LTC, the highest proportion since 2022. The majority still opted to convert, most commonly into euros (73.5%), followed by BTC (6.9%), USDC (6.8%), and USD (5.2%).

As expected, most merchants favor predictable accounting in fiat, while a smaller share are choosing to hold Litecoin directly or reallocate it into BTC or USDC. The data indicates that accepting LTC provides businesses with greater flexibility in treasury management, whether they prefer to hedge, hold, or convert immediately.

Featured image via Shutterstock.