Litecoin address activity explodes, signaling rising LTC circulation among traders


  • Litecoin address activity and whale transactions hit levels previously seen in June 2023. 
  • Dormant LTC tokens are on the move, indicating that a higher volume of Litecoins are circulating among traders. 
  • LTC price is likely to recover with bullish on-chain metrics.

Litecoin price reversed its gains on Friday, despite on-chain activity signaling rising interest from market participants. LTC’s on-chain address activity and whale transactions spiked, hitting levels seen nearly four months ago.

Also read: SEC to consider up to ten Bitcoin ETF applications as markets price in approvals

Litecoin on-chain metrics signal bullish outlook

Based on data from crypto intelligence tracker Santiment, LTC noted a rapid rise in on-chain movement towards the end of the week. Address activity and whale transactions hit levels seen in June 2023.

Santiment charts reveal that dormant LTC tokens witnessed a big spike, indicating that more coins are being circulated among market participants. After trending below 5,000 for the past month, on October 26,the total volume of whale transactions, valued at $100,000 or higher, hit 7,418 in Litecoin. Another key milestone was the movement of dormant LTC tokens. The most number of LTC wallets that were inactive previously moved LTC – the highest volume in the past six weeks.

According to Santiment, daily active addresses climbed to 319,000, the largest spike since June 2023. These on-chain metrics support a bullish outlook on LTC while the altcoin’s price struggles to recover.

LTC on-chain metrics reveal bullish outlook

LTC on-chain metrics reveal bullish outlook

LTC price rallied nearly 10% over the past week, riding Bitcoin’s coattails. LTC declined 1.5% on Friday, however. An increase in Litecoin reserves on exchanges, or whales shedding their LTC holdings could negatively impact LTC price, sending it lower.

Rising demand from market participants, supported by bullish on-chain metrics could kickstart a recovery in Litecoin. At the time of writing, LTC price is $67.69 on Binance. The altcoin started consolidating early on Friday.

 

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