In the latest developments today, Litecoin whales appear to be accumulating a huge amount of LTC, which could be quite positive for the network, especially as the halving event approaches.
In a tweet shared yesterday, July 18th, by a cryptocurrency analyst using the Twitter account @ali_charts, he said: Confirmed We confirmed this trend using data from on-chain analytics firm Santiment.
According to @ali_charts, Litecoin whales holding between 100,000 and 1,000,000 LTC have acquired 590,000 LTC (worth $59 million) in the last two days.
#Litecoin Whales purchased more than 590,000 units. $LTC It was worth about $59 million in the last 48 hours! pic.twitter.com/RtHpuzSkFt
— Ali (@ali_charts) July 18, 2023
LTC price shows no response to whale movements
As previously mentioned, the recent whale trading has a positive impact on the Litecoin network as it signifies growing confidence in the LTC asset. However, it is worth noting that the market price of LTC showed minimal reaction to these large purchases.
Related Read: Litecoin Whale Deposits Big Amount on Exchange, Bearish Signal?
For context, data from CoinMarketCap shows LTC was up only 1.44% in the last day. Meanwhile, the token is down 4.37% on the weekly chart, marking one of the highest decliners of the week.
LTC’s price action has been quite bearish since early July. The price, called “digital silver,” showed a strong rise on the 30th of last month, rising more than 26% and trading above $100 for the first time since April. This positive price movement led to some additional gains before the value of LTC began to decline, falling more than 17% from July 3 to date.
At the time of writing, LTC is trading at $92.98 and has gained 0.27% in the last hour. Meanwhile, the token’s trading volume decreased by 17.08% and its current value is $482 million. With a market capitalization of $6.82 billion, LTC is the 12th largest cryptocurrency on the market.
LTC Trading At $93.08 On The 4-Hour Chart | Source: LTCUSD Chart On Tradingview.com
More Positives for Litecoin as Investors Anticipate Halving Event
In addition to recent whale activity, the Litecoin network has also recorded other positive news, indicating increasing levels of adoption.
It reached the network on July 15th. historical milestoneSince its founding, it has processed more than 170 million transactions, with more than 10 million added in the last seven weeks.
Moreover, on July 18th, blockchain presentation LTC was selected as the best cryptocurrency for payments on the BitPay platform. According to a chart shared by BitPay, LTC accounted for 34.9% of all cryptocurrency payments on the platform in June.
Related Reading: Litecoin Becomes 10th Largest Cryptocurrency, but Is There Still Room to Run?
That said, Litecoin’s recent increase in participation is likely driven by the upcoming halving event, scheduled for August 2, 2023.
Litecoin’s halving refers to a programmed blockchain event where mining rewards are halved. This can act as a deflationary tool to help maintain a shortage of LTC in circulation, increasing demand and potentially driving up the price of the token.
Halving events occur every four years, with the first two occurring in 2015 and 2019. The current LTC mining reward is 12.5 LTC and will decrease to 6.25 LTC after the halving.
Featured image from CMC Markets, chart from Tradingview.