Written by Hazel J. Greene, Senior Analyst

As the Litecoin halving draws closer, on-chain data reveals a consistent increase in adoption within the Litecoin network. New addresses with significant holdings of 100+ LTC have been emerging, reflecting growing interest among investors.

According to data from Santiment, a leading on-chain analytics firm, the number of Litecoin addresses holding at least 100 LTC has experienced a continuous upward trajectory in the past few months. These addresses represent a significant segment of the investor base, comprising larger investors such as dolphins, sharks, and whales. Tracking the supply distribution of LTC, this growth signifies increasing adoption and a promising sign for the asset.

In the past 24 weeks, the Litecoin network has witnessed the appearance of 1,185 new addresses holding more than 100 tokens, bringing the total number to approximately 36,800. This data suggests that a larger investor base is becoming actively involved in Litecoin, which could potentially boost the asset’s sustainability and growth. Furthermore, an analysis on Twitter revealed that whales on the blockchain have been accumulating LTC at a rapid pace, indicating optimism surrounding the cryptocurrency.

These positive developments coincide with the upcoming Litecoin halving, an event where the block rewards for miners are reduced by half. Historically, halvings have been associated with bullish trends, as the growth in the asset’s supply becomes restrained. In other words, fewer new tokens are introduced into circulation. Occurring approximately every four years, the upcoming halving is set to happen in just 10 days. The market will be closely observing how Litecoin’s price behaves in the run-up to this highly anticipated event and its subsequent performance, considering the encouraging metrics backing the coin.

Presently, Litecoin is trading around $89, reflecting a marginal 1% decrease in the past week. The weeks leading up to the halving may witness increased volatility as the market adjusts to this significant event. Market participants will be keen to observe whether the positive indicators observed in Litecoin’s underlying metrics translate into upward price movements.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.