Data on the network shows that the total number of shark and whale addresses in Litecoin is now at a 2-year high, which could be a bullish signal for the value of the asset.
Litecoin turns to holding with over 1,000 LTC now at its highest level since 2020
According to network analytics company Sanitation, LTC has grown strongly since the population of these large addresses began to grow. The relevant indicator here is “Litecoin supply distribution”, which tells us how many addresses (or holders) each group of wallets currently has in the market.
Addresses are placed into these wallet groups based on the total number of coins they currently hold. For example, the range 1-10 coins includes all addresses that currently hold between 1 and 10 LTC. The supply distribution metric for that band would then measure the total number of such addresses currently on the market.
Now in the current discussion, groups of wallets that have at least 1000 LTC are of interest. Since there is no upper bound, all the remainders from this sum to infinity are added together. Here is a supply distribution chart for these Litecoin address ranges:
Looks like the value of the metric has been sharply going up in recent days | Source: Santiment
As you can see from the chart above, the indicator value for Litecoin addresses falling within this range has been rising since May of this year. Owners with 1,000 or more coins in their wallets are sharks and whales, so this uptrend means that the total number of these large investors has been growing over the past few months.
Most recently, the number of addresses of these holders reached 4232, the highest number registered in more than two years. The chart also shows that although the number of these sharks and whales is increasing (and therefore piling up), the LTCBTC ratio has increased by more than 130%.
Since this accumulation does not appear to have slowed down as of late, it is possible that it could support Litecoin’s price further gains ahead of 2023. will take place in August next year and has historically also had a bullish influence on the price.
At the time of writing, the price of Litecoin is hovering around $67, up 4% over the past week.
The value of the crypto seems to have declined during the past day | Source: LTCUSD on TradingView
Featured image by Kanchanara on Unsplash.com, charts from TradingView.com, Santiment.net