On-chain data shows HODLing behavior on the Litecoin network has remained strong recently despite the drop in LTC value it has seen.
Litecoin HODLers Currently Control Most of the Supply
In a new post on X, Litecoin’s official handle talks about how the supply is currently distributed among its different pools. Investors are divided into reference groups based on holding period.
There are three such important groups here: Traders, Cruisers, and HODLers. The first of these, Traders, refers to investors who bought their coins within the last month. This group includes new investors and short-term traders of the market, so the supply held by them is always moving.
Players who make it past one month are included in the Cruisers team. This collection represents the side of the industry that has the potential to evolve into a solid wall.
Investors who maintain the one-year mark without moving their coins even once can be considered to have lived up to this ability and are categorized as HODLers.
Below is a chart from the market intelligence platform IntoTheBlock shared by the Litecoin X account that shows how the supply held by each of the three groups has changed over the course of the network’s history:
Looks like the 1+ years cohort has seen its supply go down in recent weeks | Source: Litecoin on X
As shown in the graph, the supply held by Litecoin Traders has seen an increase recently, indicating that the old clusters are breaking their dormancy.
However, it can be seen that the Cruisers noticed that their goods were moving sideways at the same time, which means that the coins in transit were older than one year. That is, HODLers are likely to participate in the selloff.
These investors are usually determined, but it is not uncommon to see them take profits during bull runs. The decline in their supply has also not been anything too significant so far. More importantly, the recent Litecoin price crash did not cause these investors to panic and sell.
After the reduction, HODLers hold 40.5 million LTC in their wallets, which is equivalent to about 54% of the total LTC. Most of these offers are also actually older than one year, as the cryptocurrency handle revealed an average holding time on the network of 2.4 years per token.
Something to note is that while you are selling registers quickly on the offer charts for older collections, buying is not the same. Whenever Cruisers or HODLers see an increase in their supply, it does not mean that the accumulation is happening now, but rather that it happened one month or one year ago.
This is because coins have to be big enough first to be counted among these groups. Conversely, the transaction immediately resets your age to zero, which is why sales are faster.
The highest amount of LTCs
At the time of writing, Litecoin is trading around $102, down 15% over the past week.
The price of the coin appears to have plunged over the last few days | Source: LTCUSDT on TradingView
Featured image from Dall-E, IntoTheBlock.com, chart from TradingView.com
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