Litecoin, the cryptocurrency that was created by Charlie Lee in 2011, has been making headlines lately after it recently broke the $95 mark. According to on-chain data, this rise in the price of Litecoin is due to the increasing activity of whales on the network.
On-Chain data analysis firm Santiment revealed that the current whale activity is the highest since January. The relevant indicator here is the “Whale Transaction Count,” which measures the total number of transactions occurring in the Litecoin network where coins worth at least $100,000 are moved.
These transactions are typically made by large investors, which are known as “whales.” Therefore, this indicator gives us an idea of the number of transfers taking place by these giant holders on the blockchain.
Due to the large amount of coins involved in each of these transfers, a large number of transfers at once can cause significant fluctuations in the market. Therefore, if the number of whale transactions has a high value, it is more likely that the price of LTC will have volatility.
On the other hand, if this metric has low values, the price can remain relatively calm as it indicates that the whales are not currently undertaking many moves in the market.
As indicated by the graph above, the number of Litecoin whale transactions has increased sharply in recent times. This means that the whales have increased their transfer activity in the last few days.
At its peak, this rise had reached its highest level since January 26, 2023. These high values came with rising prices, and since then, the upward trend has continued, with LTC breaking through $95.
When whales become active, price volatility can generally go in both directions since the transaction count metric only reveals the number of transfers taking place on the chain and not whether they are buying or selling moves.
However, since the price has apparently continued to rise after this recent increase, it could appear that the Litecoin whales may be supporting the current upward trend.
The graph also includes data on transaction volume, which is a measure of the daily total amount of LTC that is registered as moving on the blockchain. This indicator has also recorded a sharp increase in recent times, which indicates that users are currently moving large amounts in the network.
This new price increase in Litecoin came about due to halving – an event where the block rewards for the coin are permanently divided by two, which is happening in just a few months.
As of the writing of this article, Litecoin is trading at around $95, which is a 9% increase in the last week. Overall, the increasing whale activity on the Litecoin network is a promising sign for the future of the cryptocurrency.
