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Chain data shows that the combined number of shark and whale addresses is now at its highest level in two years, a potentially bullish signal for asset value.
Litecoin Locations Holding More. More than 1,000 LSDs have reached their highest level since 2020.
As per data from the on-chain analytics firm Santiment, LTC has been climbing strongly since the population of these large addresses began to rise. The relevant indicator here is the "litecoin supply distribution", which tells us how many addresses (or holders) belong to each group of portfolios in the market at the moment.
Addresses are placed in these portfolio groups based on their current total coin holdings. For example, the band of 1 to 10 exhibits includes all addresses that currently contain 1 to 10 CTA's. The measure of supply distribution for this band would then measure the total quantity of these addresses that currently exist on the market.
Now, the wallet groups of interest in the current discussion are those with at least 1,000 LTC. As there is no upper limit here, all balances between that amount and infinity are cumulative. Below is the distribution table of the offer for these bands of Italian addresses:
Looks like the value of the metric has been sharply going up in recent days | Source: Santiment
As shown in the graph above, the Litecoin address indicator within this range has been on the rise since May of this year. Holders that have 1,000 or more coins in their wallets are sharks and whales, so this uptrend implies that the total number of these large investors has been going up in the last few months.
Most recently, the number of addresses of these owners has reached a value of 4,232, the highest value recorded in over two years. From the chart, it’s also visible that while these sharks and whales have been increasing in number (and hence accumulation has been going on), the LTCBTC ratio has seen a rise of more than 130%.
Since this accumulation hasn’t seemed to have slowed down recently, it’s possible that it could sustain further appreciation in the price of Litecoin heading into 2023. The next half to the SLD, an event that would cut its supply production in two, is also expected for August of next year and has always had an upward effect on price.
At the time of writing, Litecoin’s price floats around $67, up 4% in the last week.
The value of the crypto seems to have declined during the past day | Source: LTCUSD on TradingView
