62.5% Of All LTC Investors Are HODLers

April 13, 2024 CryptoExpert Finance

On-chain data shows that Litecoin’s long-term holders have achieved a new record: 62.5% of all LTC investors now qualify as these HODLers.

There Are Now More Than Five Million Litecoin Long-Term Holders

According to data from the market intelligence platform IntoTheBlock, the LTC network recently reached a new milestone in terms of its long-term holder count.

The “long-term holders” (LTHs) here refer to Bitcoin investors who have held their coins for more than a year without moving or selling them. Note that IntoTheBlock chose this cutoff; other analytics firms have an LTH threshold between 5 and 6 months.

Statistically, the longer an investor holds onto their coins, the less likely they become to sell at any point. As such, the LTHs, who hold for relatively long periods, are considered to carry a strong resolve.

Historically, the LTHs rarely show selling activity, regardless of whatever happens in the rest of the market. The fickle-minded part of the sector that holds for relatively low timespans is called the short-term holder (STH) group.

Participating STHs in selloffs isn’t uncommon; it happens whenever significant volatility emerges, whether in the form of a rally or crash. On the other hand, it can be a notable event when the LTHs sell.

One way to track the behavior of the LTHs is through the total number of addresses that qualify for the cohort. Below is the chart shared by the analytics firm that reveals the trend in this metric for Litecoin since the start of the year.

The value of the metric seems to have been going up in recent months | Source: IntoTheBlock on X

As displayed in the above graph, the number of Litecoin LTH addresses has grown significantly over the last few months and has now reached the 5 million mark.

This means that more than five million LTC wallets haven’t made any move since at least a year ago. This corresponds to 62.5% of all addresses on the blockchain currently carrying some non-zero balance.

This is a significant amount and suggests that most of the holder base has been interested in HODLing the cryptocurrency. Naturally, supply staying locked in the wallets of these diamond hands can be bullish due to how supply-demand dynamics tend to play out.

Remember that any increases in the LTH addresses don’t imply that HODLers are currently buying Litecoin. Rather, it suggests that some investors acquired coins a year ago, and they have only now been able to qualify for the group.

Thus, the metric has a delay of 1 year attached between when accumulation happened and when it registers an increase. Selling doesn’t carry the same restriction, as investors are immediately ejected from the cohort if they transfer their coins on the network.