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- The Litecoin network’s total transactions and hash rate has seen a substantial increase since its last halving in 2019.
- Litecoin (LTC) shark and whale addresses have continued to accumulate since halving forming a bullish divergence for LTC.
Litecoin, the silver to Bitcoin’s gold, has once again been under traders’ radar after undergoing a successful halving event earlier this month in August. The Litecoin (LTC) price has been on a downward trajectory ever since the halving, however, it seems to be taking support at around $80.
As of press time, LTC is trading at $82.25 with a market cap of just over $6.04 billion. LTC has made significant progress since its last halving on August 5, 2019. The network’s official account on social platform X recently compared the transaction volume from 2019 to the current levels, showing a remarkable increase of five times. As of 2023, the daily transaction volumes for Litecoin stand at just under $2 billion.
The surge in transaction volume resulted from a rise in the total number of transactions, indicating increased interest in buying and selling LTC. This heightened trading activity necessitated increased mining efforts to match the demand. As a result, another significant factor, the hash rate, has also experienced substantial growth since the last halving.
According to Coinwarz data, the hash rate has surged from an average of 300 TeraHashes per second (TH/s) during the halving year to nearly 783 TH/s as of the current time.
In one of the recent tweets, the Litecoin Foundation noted that they have ensured a predictable LTC supply. This gives a complete picture of the total Litecoins under circulation and the current inflation rate of LTC.
Litecoin's issuance is over time, people can rely on predictable supply. This is helpful to understand what the current inflation rate of #Litecoin is, what the future rate will be at a specific time, how many litecoins are in circulation and how many are left to be mined. ⚡ pic.twitter.com/iXsx4IGBYC
— Litecoin (@litecoin) August 13, 2023
Litecoin (LTC) Whale Accumulation
Ever since the Litecoin halving on August 2, the Litecoin (LTC) shark and whale addresses have continued to accumulate LTC. During a recent video strategy session, Brian Quinlivan, the Director of Marketing at Santiment, pointed out that there seems to be a bullish divergence forming in the peer-to-peer payments network. This is evident as both sharks and whales are accumulating LTC during price dips.
Litecoin addresses holding 100 to 10,000 LTC have continued to accumulate in this dip. When it comes to the total number of coins they possess, these significant sharks and whales now collectively hold 31.5 million coins. This is the highest amount they’ve held throughout this year. If we look back to 2022, they’ve maintained a consistently upward trend. This positive movement is an encouraging signal for Litecoin.
This shows a bullish divergence with Litecoin (LTC) still having enough ammo left to rally up to the end of 2024. Quinlivan also analyzes Litecoin’s 30-day market value to realized value (MVRV) to identify potential overbought or oversold situations. He suggests that based on the MVRV, Litecoin might need to experience a dip in the near future to establish a market bottom before rebounding.
“Despite a decline, 30-day traders have gained around 11%, while 365-day traders are up by 0.6%, essentially even. Ideally, we’d like both short-term and long-term values to be below zero, indicating they’re underwater..,” he adds.
When both are underwater simultaneously, it’s where market bottoms form, indicating a good time to invest. Currently, some cooling off is needed. Despite a 26% drop since July 2nd, more decrease might be necessary to push the 30-day average returns into negative territory, creating a solid setup to buy with potential premium or low risk
