Santiment, a prominent cryptocurrency analytics platform, reported that as the highly anticipated Litecoin halving event approaches on Wednesday, key traders who hold positions ranging from $9.5k to $950k worth of LTC are engaging in aggressive accumulation.
As history suggests, this reduction in supply and the potential increase in demand could have logical implications.
According to the Litecoin calendar, the upcoming halving event is scheduled for August 2 at 17:25 GMT and this event will occur on block 2,140,000, causing the mining reward for Litecoin to decrease from 12.5 LTC to 6.25 LTC.
Similar to Bitcoin, Litecoin experiences halving events every four years. During a halving, the number of Litecoins generated with each block mined is halved.
Santiment’s previous report reveals that big holders of Litecoin, known as whales, have been contributing to the surge in trading volumes. They have been actively adding to their LTC holdings, with addresses holding between 100,000 and 1 million LTC now owning over 35% of the total supply. In total, these whales have increased their holdings by $59 million.
The recent increase in on-chain activity for Litecoin, combined with the excitement surrounding the upcoming halving event, indicates a promising outlook for LTC.
Litecoin’s active addresses have been steadily increasing since April, reaching a significant milestone of 8.5 million last week, as reported by IntoTheBlock. At the time of writing, Litecoin is trading at $94 and is up by more than four percent.
