Litecoin HODLing Strong Despite 15% Crash: 54% Of Supply Dormant Since 1+ Years

Source Bitcoinist

On-chain data shows HODLing behavior on the Litecoin network has remained strong recently despite the plunge that LTC’s value has observed.

Litecoin HODLers Currently Control The Majority Of Supply

In a new post on X, Litecoin’s official handle talks about how the asset supply is distributed between its different cohorts right now. The investors have been divided into the groups in question based on holding time.

There are three such cohorts relevant here: Traders, Cruisers, and HODLers. The first of these, the Traders, refers to the investors who bought their coins within the past month. This cohort includes the new investors and short-term traders of the market, so the supply held by them is constantly in motion.

Holders that make it past the one-month cutoff are put into the Cruisers group. This cohort represents the side of the sector that has the potential to evolve into a resolute wall.

Investors that hold past the one-year mark without moving their coins even once can be assumed to have lived up to this potential and are put in the HODLers category.

Below is the chart from the market intelligence platform IntoTheBlock shared by the Litecoin X account that shows how the supply held by each of these three groups has changed over the course of the network’s history:

Litecoin HODLers

As displayed in the graph, the supply held by Litecoin Traders has observed an increase recently, which suggests the older cohorts have been breaking their dormancy.

It’s also visible, however, that the Cruisers have witnessed their supply moving sideways at the same time, implying the coins on the move have been older than one year. That is, the HODLers have potentially been participating in a selloff.

These investors generally tend to be quite resolute, but it’s not unusual to see them taking profits during bull runs. The decline in their supply has also not been anything too significant so far. More importantly, the latest crash in the Litecoin price hasn’t caused these investors to panic and sell.

After the decrease, the HODLers carry 40.5 million LTC in their wallets, equivalent to almost 54% of the total LTC supply. A lot of this supply is also actually much older than one year, as the cryptocurrency’s handle has revealed the average holding time on the network is 2.4 years per token.

Something to note is that while selling registers immediately in the supply charts of the older cohorts, buying isn’t the same. Whenever the Cruisers or HODLers see an increase in their supply, it doesn’t mean that accumulation is happening in the present, but rather that it occurred one month or one year ago.

This is naturally due to the fact that coins have to age up sufficiently first in order to be counted among these cohorts. In contrast, transactions instantly reset back their age to zero, which is why selling is immediate.

LTC Price

At the time of writing, Litecoin is trading around $102, down 15% over the last week.

Litecoin Price Chart

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Japanese Yen stands tall near one-month top against USD on hawkish BoJ talksThe Japanese Yen (JPY) rallied to the highest level since early February against its American counterpart on Friday amid bets for an imminent shift in the Bank of Japan's (BoJ) policy stance.
Author  FXStreet
Mar 11, Mon
The Japanese Yen (JPY) rallied to the highest level since early February against its American counterpart on Friday amid bets for an imminent shift in the Bank of Japan's (BoJ) policy stance.
placeholder
Natural Gas sinks to pivotal level as China’s demand slumpsNatural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
Author  FXStreet
Jul 01, Mon
Natural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
placeholder
The $589 XRP Dream: Believers Aren’t ‘Delusional’ Enough, Expert SaysA known market analyst sees the $6 per coin prediction for XRP crypto being claimed by some experts as too conservative.
Author  NewsBTC
Dec 17, Tue
A known market analyst sees the $6 per coin prediction for XRP crypto being claimed by some experts as too conservative.
placeholder
Bitcoin Price Annual Forecast: 2025 outlook brightens on expectations of US pro-crypto policyBitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December.
Author  FXStreet
Dec 19, Thu
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December.
placeholder
Rumble shares surge 46% in pre-open trade on $775M investment from TetherInvesting.com -- Shares of Rumble (NASDAQ:RUM) surged over 46% in pre-open trade on Monday following a $775 million investment from Tether, the digital assets company behind the widely used USDT stablecoin.
Author  Investing.com
16 hours ago
Investing.com -- Shares of Rumble (NASDAQ:RUM) surged over 46% in pre-open trade on Monday following a $775 million investment from Tether, the digital assets company behind the widely used USDT stablecoin.
goTop
quote