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As reported by crypto analytics portal Santiment, big whale activity on Litecoin (LTC) has literally exploded in cash. Thus, the amount of transactions by large investors, that is, those of $1 million or more, has reached levels comparable to the highs of 2022.
There are few obvious reasons why crypto whales have settled in Litecoin's waters. The first is the general "greening" of the crypto market, with its capitalization adding 32% at the start of the year and reaching the $1 trillion level again.
⚡️🐳 #Litecoin's large whale transactions have exploded with activity, indicating a resurgence of transactions that are valued at $1 million or more. On the tail end of the last two similarly sized whale spikes, prices jumped +37% and +33% at their peaks. https://t.co/WD3Mc5QWKg pic.twitter.com/ruuIGXHEBQ
— Santiment (@santimentfeed) January 26, 2023
As Santiment points out, the previous two times large investors started operating millions in Litecoin, the LTC price had risen by 37% and 33% thereafter.
Yuri MolchanLitecoin halving
The second reason could be the fact that Litecoin will be halved this August, and the reward for a mined block will be lowered. This has happened twice before with LTC, in 2015 and 2019, and both times the price of the coin has risen extensively.
Interestingly, each time Litecoin started rising 200-230 days before the event, and this time was no exception but instead fit perfectly into the crypto market's revival at the beginning of the year.
Godfrey BenjaminAt the moment, Litecoin is trading at $88.85, and as long as the crypto market tends to go up, a decline is unlikely. However, to think that such a favorable market environment will last until August seems reckless, given global and economic conditions.
Alex Dovbnya
Valeria Blokhina
Vladislav Sopov
Dan Burgin
U.Today Editorial Team