On-chain data shows that HODLing behavior on the Litecoin network has remained strong recently despite the drop seen in LTC value.
Litecoin HODLers currently control most of the supply
in a new mail In X, Litecoin’s official name speaks to how the asset supply is distributed among its different cohorts at the moment. Investors have been divided into the groups in question according to the holding time.
There are three such cohorts relevant here: traders, cruisers and HODLers. The first of them, the Traders, refers to the investors who bought their coins during the last month. This cohort includes the market’s new investors and short-term traders, so the supply they hold is constantly moving.
Holders exceeding the one-month limit are included in the Cruisers group. This cohort represents the side of the sector that has the potential to evolve into a determined wall.
Investors who surpass the one-year mark without moving their coins even once can be assumed to have lived up to this potential and fall into the HODLers category.
Below is the chart from market intelligence platform IntoTheBlock shared by the Litecoin X account showing how the supply of each of these three pools has changed throughout the history of the network:
Looks like the 1+ years cohort has seen its supply go down in recent weeks | Source: Litecoin on X
As shown in the chart, Litecoin Traders supply has seen an increase recently, suggesting that the older cohorts have been breaking their slumber.
However, it is also visible that Cruisers have witnessed their supply moving sideways at the same time, implying that the coins in motion are over a year old. That is, HODLers have potentially been participating in a sell-off.
These investors generally tend to be quite determined, but it is not uncommon to see them take profits during bull runs. The decrease in its supply has not been very significant so far either. More importantly, the latest drop in Litecoin price has not caused these investors to panic and sell.
After the drawdown, HODLers carry 40.5 million LTC in their wallets, which is equivalent to almost 54% of the total LTC supply. Much of this supply is also well over a year old, as cryptocurrency management has revealed that the average holding time on the network is 2.4 years per token.
Something to keep in mind is that while selling registers immediately on the supply charts of older cohorts, buying is not the same. Whenever Cruisers or HODLers see an increase in their supply, it does not mean that the accumulation is happening in the present, but rather that it happened a month or a year ago.
Naturally, this is due to the fact that the coins must first be aged enough to be counted among these cohorts. On the contrary, transactions instantly reset their age to zero, which is why the sale is immediate.
LTC Price
At the time of writing, Litecoin is trading around $102, down 15% from the last week.
The price of the coin appears to have plunged over the last few days | Source: LTCUSDT on TradingView
Dall-E Featured Image, IntoTheBlock.com, TradingView.com Chart
