13% of All Litecoin (LTC) in Circulation Is Unchanged in 5 Years: Report

According to data compiled by blockchain analytics firm IntoTheBlock, roughly 13% of the total supply of Litecoin (LTC) has been untouched for five years.

company analyst guessed that the reason for the inaction could be “unshakable faith” in the Litecoin project or loss of assets. The findings show the average holding time of LTC to be 2.1 years, regardless of the reason for the inactivity.

13% of LTC supply idle for five years

Litecoin, often referred to as the digital gold of bitcoin, has recently seen a surge in on-chain activity as investors prepare for the network’s upcoming third halving. The HODLing attitude of investors may be associated with the expectation of positive price action upon completion of the event.

A halving of less than five weeks will reduce the block rewards paid to miners by half. While this event is expected to occur on August 2, 2023 at block 2,520,000, this date is subject to fluctuations in the network’s hash rate.

The reward for miners will be reduced from 12.5 LTC to 6.25 LTC, which will reduce the coin production rate on the network. The purpose of this mechanism is to create scarcity to boost the value of LTC, counteract inflation, and encourage a stable growth trajectory for the crypto asset.

With this in mind, investors have started flocking to the network, hoarding LTC or refusing to give up their holdings.

in may, crypto potato The total number of LTC addresses with balances since the end of April has reportedly increased to 8.5 million. New and active addresses on the network are approaching their all-time high (ATH) reached in February. Notably, Litecoin’s new address count briefly exceeded that of bitcoin.

LTC reaches 14 month high

In addition to the increase in on-chain activity, the market cap of LTC has also registered some significant growth recently. Within the past week, the asset’s price reached a 14-month high, reaching the $110 level. Currently trading at $102.60, according to CoinMarketCap data, LTC has become the tenth largest cryptocurrency by market cap.

Similarly, the hash rate of Litecoin has increased to a new ATH of 797.72 Tera Hash/Second (Th/s). The network’s mining difficulty is also hovering around the recently established 26.38 million ATH set.