Litecoin’s price took a 15% tumble recently, but surprisingly, long-term holders aren’t panicking. Data shows that a significant portion of Litecoin remains locked up, indicating strong HODLing behavior.
Who’s Holding the Litecoin?
The Litecoin team analyzed the distribution of Litecoin across different investor groups based on how long they’ve held their coins:
- Traders: These are folks who bought Litecoin within the last month – short-term investors and traders. Their holdings are constantly changing.
- Cruisers: These are investors who have held Litecoin for more than a month but less than a year. They represent a potentially stable group.
- HODLers:
These are the long-term investors who have held their Litecoin for over a year without selling. They’re considered the most steadfast holders.
The Data Speaks Volumes
A chart from IntoTheBlock shows the supply held by each group over time. Recently, the Trader group saw an increase, suggesting some older coins are moving. Simultaneously, the Cruiser group’s holdings remained relatively flat, hinting that the coins being traded are likely from the HODLer group.
This doesn’t mean a massive sell-off. HODLers are known for their resilience, and occasional profit-taking during bull runs isn’t unusual. Even after the recent price drop, HODLers still control a massive 54% of the total Litecoin supply (around 40.5 million LTC). The average Litecoin holding time is a remarkable 2.4 years!
Understanding the Numbers
It’s important to remember that buying doesn’t show up immediately on the charts. An increase in the Cruiser or HODLer groups means that accumulation happened a month or a year ago, respectively. Selling, however, is reflected instantly.
Current Litecoin Price
At the time of writing, Litecoin is trading around $102, down 15% from the previous week. Despite this drop, the strong HODLing behavior suggests a resilient community.
