Litecoin Sees Largest Spike in Active Addresses, Watch Out Whale Activity Before Halving

While Bitcoin and other altcoins have faced the heat of selling pressure, Litecoin is showing strength over the past few weeks. The LTC price has gained past $90 ending the last week with more than 14% gains.

Also, the recent surge in the Litecoin (BTC) price as analysts turn bullish over the upcoming Litecoin halving event ahead of this year in August 2023. Citing data from Glassnode, popular crypto analysts Ali Martinez reported about a strong uptick in the Litecoin active addresses. He wrote:

“Litecoin recently saw the largest spike in active addresses, where more than 832,000 $LTC addresses were interacting in the network as senders or receivers”.

Litecoin Halving LTC20 Just Three Months Away

The upcoming LTC20 halving ahead on August 10 will be a game-changing event for the Litecoin ecosystem. Of course, many experts expect it to have a positive impact on the LTC price.

The Litecoin halving shall happen on the block 2,140,000, thereby reducing the mining rewards for Litecoin from 12.5 LTC to just 6.25 LTC. Thus, this reduced supply and increased supply will push the price higher.

As discussions around the LTC20 started to heat up earlier this month in May, the on-chain transaction volumes also witnessed a gradual ascension. On-chain data provider Santiment reports that if the trend of increased on-chain volume continues, it will indicate that whales have started accumulating LTC ahead of the halving event. Furthermore, Santiment adds:

“The amount of unique addresses interacting on the Litecoin network absolutely skyrocketed, suddenly reaching a greater than one-year high just as its price was bottoming out. This was obviously a great signal that addresses were stocking up on what may be the only “discount” before August 10th”.

After quick gains over the last few weeks, there’s a possibility that LTC could enter a phase of consolidation in the short term before resuming the upward journey further.