In the latest development today, Litecoin whales appear to be accumulating huge amounts of LTC, which could be quite positive for the network, especially as its halving event approaches.
In a tweet shared yesterday, July 18, by a crypto analyst with the Twitter handle @ali_charts, he confirmed this trend using data from on-chain analytics firm Santiment.
According to @ali_charts, Litecoin whales holding 100,000-1,000,000 LTC have acquired over 590,000 LTC, worth $59 million, in the last two days.
#Litecoin whales have bought over 590,000 $LTC in the last 48 hours, worth around $59 million! pic.twitter.com/RtHpuzSkFt
— Ali (@ali_charts) July 18, 2023
LTC Price Shows No Reaction To Whale Movement
As earlier stated, these recent whale transactions spell a positive undertone for the Litecoin network, as it indicates growing confidence in the LTC asset. However, it is worth noting that LTC’s market price has shown minimal reaction to this massive buying spree.
Related Reading: Litecoin Whales Deposit Big To Exchanges, Bearish Sign?
For context, LTC is up by only 1.44% in the last day, according to data from CoinMarketCap. Meanwhile, the token is down by 4.37% on the weekly chart and is marked as one of the top weekly losers.
LTC’s price movement has been quite bearish since the start of July. The “Digital Silver” – as it is called – ended last month on a high note, gaining over 26% on June 30 to trade above $100 for the first time since April. This positive price movement was followed by some little extra gains before LTC’s value started falling, declining by over 17% between July 3 and now.
At the time of writing, LTC is exchanging hands at $92.98, with a 0.27% gain in the last hour. Meanwhile, the token’s trading volume is down 17.08% and is now valued at $482 million. With a market cap of $6.82 billion, LTC ranks as the 12th biggest cryptocurrency in 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
Asides from the recent whale activity, the Litecoin network has also recorded other positive news that indicates a growing level of adoption.
On July 15, the network reached a historic milestone, having processed over 170 million transactions since its inception, with over 10 million transactions added in the last 7 weeks.
Furthermore, on July 18, the blockchain announced that LTC ranked as the leading crypto for payment on the BitPay platform. According to a chart shared by BitPay, LTC accounted for 34.9% of all crypto payments on its platform in June.
Related Reading: Litecoin Becomes 10th-Largest Cryptocurrency, But Is There Still Room To Run?
That said, Litecoin’s recent growth in engagement is likely driven by its upcoming halving event, which is scheduled for August 2, 2023.
Litecoin’s halving represents a programmed blockchain event in which mining rewards are reduced by half. It serves as a deflationary tool that helps maintain the scarcity of LTC in circulation, thereby increasing demand, which could potentially drive up the token’s price.
The halving event occurs every four years, with the first two being in 2015 and 2019. Currently, LTC mining rewards stand at 12.5 LTC and will reduce to 6.25 LTC post-halving.
Featured Image From CMC Markets, Chart From Tradingview.