On-chain data shows that Litecoin whales have been active recently as the network processed many large movements.
Litecoin’s large trading volume recently reached $2.85 billion
According to data from market intelligence platform IntoTheBlock, the Litecoin network has recently witnessed high activity by whale entities.
A relevant on-chain metric here is “Large Transaction Volume,” which tracks the total amount of LTC moved on the blockchain by transactions of $100,000 or more.
Since only whales can move such large amounts in a single transfer, this amount can be considered to represent the activity of these large investors.
A high value for this metric means that the network is observing a large amount of shift away from whales. These trends indicate that this cohort is currently actively interested in asset trading.
On the other hand, a low value of the indicator may suggest that large investors are not moving as many coins and are therefore not paying much attention to the cryptocurrency at the moment.
Here is a graph showing the trend of Litecoin’s large transaction volume over the past week or so.
The value of this indicator seems to have been at a relatively high level in recent days. Source: IntoTheBlock on X
The graph above shows that Litecoin’s large transaction volume has been high recently. More specifically, the network observes an average of $2.85 billion in whale trades each day.
The analysis firm notes that this is more than most layer 1 cryptocurrency networks, even networks larger than LTC. “Dogecoin, for example, is expected to generate $590 million in large trades despite being about three times the market capitalization of Litecoin,” says IntoTheBlock.
Unsurprisingly, this large number of whales suggests that they have been quite active on the blockchain. To put the recent averages into perspective, LTC’s market capitalization is:
LTC currently appears to be ranked 20th among top cryptocurrencies by market capitalization | Source: CoinMarketCap
As seen above, Litecoin’s market cap is currently $5.1 billion, meaning the whale is trading around an amount equivalent to more than half of the asset’s total valuation.
So, what does the high activity of whales mean for cryptocurrencies? In general, the large number of transactions by such a large number of investors can lead to large fluctuations in asset prices. However, the direction depends on what activities the whales participate in in buying and selling.
In other news, the official handle of LTC
LTC is outperforming Bitcoin (BTC) and Ethereum (ETH) on this metric. Source: X Litecoin
LTC price
While Bitcoin and other major assets have barely recovered, Litecoin has rallied more than 14% over the past week, returning to the $68 level.
The price of the coin has been increasing over the past week. Source: LTCUSD on TradingView
Dall-E, featured image from CoinMarketCap.com, chart from TradingView.com
