• Litecoin (LTC) is preparing for a halving event on Aug 2, which has spurred whales to increase their holdings.
• Santiment’s data shows that whale addresses holding between 100,000 and 1 million LTC now hold over 35% of the supply.
• Litecoin transaction volumes have taken off as retail investors follow the whales’ lead.
Litecoin Halving Event Spurs Whale Accumulation
Litecoin (LTC), one of the oldest altcoins, is preparing for a halving event on Aug 2. The whales are also preparing and adding to their holdings according to on-chain data tracker Santiment. Addresses holding between 100,000 and 1 million LTC now hold over 35% of the supply, pumping their purses by $59 million since early July due to price depreciation and the drawing halving event.
Halving Could Increase Price Appreciation
Taking place on block 2,140,000, the reward for mining Litecoin will suddenly drop from 12.5 LTC to just 6.25 LTC with reduced supply and increased demand which could make logical sense based on history . In detail, like Bitcoin , Litecoin has a halving event every four years where the amount of Litecoin created each time a block is mined is cut in half strengthening the incentive to mine as much as possible just prior to the halving thus putting more value on each existing coin.
Retail Investors Follow Whale Lead
According to Santiment’s “crowd discovery” in mid-May forums began seeing increased interest reminding traders that this event was within three months away leading to an increase in on-chain transaction volume which could spur further price appreciation as smaller investors tend to watch and sometimes copy whale incentives.
History Suggests Bullish Price Movement
Looking back at previous halvings both Bitcoin & Ethereum saw massive increases in value post events so there may be room for positive momentum for litecoin if history repeats itself if enough buy pressure builds up before or after August 2nd when it occurs even though nothing can be guaranteed when it comes down too market speculation.
With all these factors combined it appears litecoin could see some significant bullish momentum during its upcoming halving increasing its prices especially if enough retail investors join along in this trend following suit with large holders while smaller investors take advantage of any potential dip before or after this event takes place later in August 2020