Litecoin (LTC) Sees 60% of Supply Moved in One Go
A mysterious transaction at the end of November moved some 36 million LTC, or the equivalent of $1.16 billion.
Based on network statistics, Litecoin (LTC) saw an anomalous transaction of around 36 million coins, or $1.16 billion. While it is likely the result of moving coins from exchange wallets, some see the regrouping as preparation for more active times to come.
Traders have also noticed a significant movement of coins:
It is possible that some of the LTC are sent to exchanges, which usually hold the largest wallets. The wallet ecosystem and observed addresses are a source of panic for investors interested in crypto assets. Even though no single wallet for LTC holds more than 1.56% of the supply, a tweet from Weiss Ratings suggests a single source of the large transactions:
However, it seems like the top wallets for exchanges simply received funds, with reasons ranging from a plan to sell to a preparation for a price rally.
The Litecoin network has seen a general decline in transactions in the past months, from a record of above 226,000 in 24 hours down to around 26,000. LTC has been used to transfer funds to and from exchanges, but with the decline in general enthusiasm for trading, the network is experiencing subdued activity.
In addition, the Litecoin hashrate has fallen by roughly 50% in the past six months, coinciding with a trend of weakening Bitcoin mining. The ASIC-mined coin has not seen such an inflow of miners as larger networks.
However, LTC remains one of the more liquid coins, with robust presence on Asian exchanges. It is also viewed as having the potential to attract institutional investors. Additionally, the Litecoin network is used by the Abra app to store digital assets in a smart contract, with Abra users only seeing a synthetic version of the assets.
LTC prices hover around $30.87 on volumes of some $400 million equivalent in 24 hours. The recent price weakness and continued slide have triggered forecasts of LTC slipping below the $30 level and possibly returning to single-digit prices.
Neither the author nor the publication assumes any responsibility or liability for any investments, profits, or losses made as a result of this information. Cryptocurrency trading and investing are risky propositions, and market participants are advised to always conduct thorough research.