On-chain data shows that long-term Litecoin holders have hit a new record. These HODLers currently represent 62.5% of all LTC investors.
Currently, there are over 5 million long-term holders of Litecoin.
According to market intelligence platform data into the blockLTC Network recently reached a new milestone in terms of the number of long-term holders.
“Long Term Holders” (LTH) here refer to Bitcoin investors who have held their Bitcoin for more than a year without moving or selling it. Note that IntoTheBlock chose this cutoff. Other analytics companies have LTH thresholds of 5-6 months.
Statistically, the longer an investor holds a coin, the less likely they are to sell it at any time. In this way, LTH, which is held for a relatively long period of time, is considered to have a strong determination.
Historically, LTH rarely exhibits selling activity, no matter what happens in the rest of the market. The volatile part of the sector that holds for a relatively short period of time is called the short-term holders (STH) group.
It is not unusual for STH to participate in a crash. That happens every time there is significant volatility, whether it’s a rise or a crash. On the other hand, when LTH is sold, it can be a noteworthy event.
One way to track LTH behavior is to look at the total number of addresses that fall into a cohort. Below is a graph shared by an analytics firm that reveals trends in Litecoin metrics since the beginning of the year.
The value of this indicator appears to have increased in recent months. sauce: X into the block
As shown in the graph above, the number of Litecoin LTH addresses has increased significantly over the past few months and has now reached the 5 million mark.
This means that over 5 million LTC wallets have been inactive for at least a year. This represents 62.5% of all addresses on the blockchain that currently hold non-zero balances.
This is a significant amount and suggests that most of the holder base is interested in HODLing the cryptocurrency. Naturally, the supply that remains locked in these Diamond Hand wallets could turn bullish due to how supply and demand dynamics tend to play out.
Note that an increase in LTH addresses does not mean that HODLers are currently buying Litecoin. Rather, it suggests that some investors acquired the coin a year ago and were only now able to qualify for the group.
Therefore, the metric has a one-year lag between when accumulation occurs and when it records an increase. If an investor transfers coins on the network, they are immediately removed from the cohort, so there are no similar restrictions on sales.
LTC price
Litecoin price is currently hovering around $95, and has been trading within a range recently.
Recently, the price of the coin seems to have stopped moving sideways | Source: LTCUSD on TradingView
Featured image by Michael Förtsch on Unsplash.com, IntoTheBlock.com, Charts on TradingView.com
