• Litecoin whales are increasing their holdings in anticipation of the upcoming halving event on Aug 2.
• Transaction volumes have begun to rise as retail investors follow the incentives of larger holders.
• The reduced supply and increased demand could cause a pump in LTC prices following the halving.
Litecoin Halving Looms
The halving event for Litecoin (LTC) is scheduled for August 2, and as the date approaches, whales are accumulating more coins while retail investors watch and follow suit.
Whales Accumulating Holds
According to Santiment, addresses holding between 100,000 and 1 million LTC now hold over 35% of the supply, adding $59 million to their purses since early July due to price depreciation leading up to the halving event. Additionally, Santiment reported that Litecoin saw a 6% whale address number increase in the previous five months.
Halving Could Pump Prices
During a halving, the amount of Litecoin created each time a block is mined is cut in half, which strengthens miner incentives and increases value on existing coins due to slower production moving forward. Thus, when block 2,140,000 is reached at 1725 GMT on August 2nd, mining rewards will drop from 12.5 LTC to just 6.25 LTC.
Retail Investors Following Whales
As forums and posts about the halving began popping up mid-May with increased interest from traders reminding one another of its impending arrival, transaction volumes started taking off accordingly as retail investors followed whale activity into accumulating more coins themselves.
In conclusion it appears that both large holders (whales) and smaller investors alike are preparing for what could be an exciting pump once reduced supply coupled with increased demand kick in after the Litecoin halving occurs on August 2nd .