Litecoin (LTC) Holders Refuse To Sell Despite Falling Prices

Litecoin, the fifteenth largest cryptocurrency, registered a considerable growth in the number of long-term holders of its LTC token. The token’s holders managed to display commendable confidence despite a significant drop in the price of LTC. 

On-chain analytics platform IntoTheBlock took to X recently to highlight the surge in Litecoin’s long-term holders:

According to on-chain data gathered by IntoTheBlock, more than 4.5 million crypto addresses held LTC for over a year. The metric nearly doubled from last year’s 2.5 million count, marking a clear sign of confidence from LTC holders, despite a 30% decline in the token’s price over the past six months. 

The conviction in LTC holders was surprising, given the rather discouraging performance of the token in recent weeks. As per CoinMarketCap, the token has lost over 40% of its value since July 2023, which led to a $3 billion slide in its market capitalization. At the time of writing, LTC was trading at $67.5 with a daily trading volume of $573 million (up 151% over the past 24 hours).  

On August 2, Litecoin witnessed its third halving event which reduced its block reward from 12.5 LTC to 6.25 LTC. Following the halving, LTC’s price proceeded to drop nearly 14% in less than a week. The drastic price decline came despite online sentiment suggesting that the halving event wouldn’t have such an impact on the token. 

Additional network activity data from IntoTheBlock revealed that the daily number of new Litecoin addresses had reduced by 7% since August 10. Meanwhile, the daily active addresses on the network declined by 27% over the same period. Data from Coinglass showed that the total open interest on LTC perpetual futures increased by a whopping 10.2% over the past 24 hours.