Since the end of the first 10 days of November, the price of Litecoin has risen by 80% to $97.77 per LTC, the highest in eight months. The unprecedented growth of this dino coin, as old cryptocurrencies like Litecoin are called, can be attributed to two key causes.
The first reason is suggested by data from crypto analytics portal Santiment. According to it, none other than large holders of Litecoin have filled the coin's quotes with "cash powder." Thus, over the past seven months, addresses holding between 100 and 10,000 LTC have added a combined 1.15 million coins, which is 0.5% of Litecoin's total supply.
🦈 #Litecoin has now rallied its price up +89% since its drop below $50 on November 9th. Culprits for the surge of the 11+ year-old coin include addresses holding 100-10,000 $LTC, who have added 1.15M more coins in the past 6 months, a 4.92% increase. https://t.co/JHO30q1c0x pic.twitter.com/HP1mfqpoBR— Santiment (@santimentfeed) January 31, 2023
Having started accumulating at the end of July, these crypto sharks took the chance to fill their bags when Litecoin was quoted at less than $60 per coin.
Litecoin (LTC) halving
The second reason is a landmark event awaiting Litecoin in less than 200 days. It is about halving, that is, reducing rewards for each LTC mined. The event is projected to take place as early as August 2023 at block height 2,520,000.
As reported by U.Today, the halving of Litecoin and other proof-of-work tokens can be classified as an event that positively affects cryptocurrency prices. At the same time, it is important to understand that this is not an axiom, and even if an event leads to a rise in the price of LTC, it may also be preceded by a fall in the face of a large-scale correction on the market.