Surge in Litecoin Whale Transactions Could Lead to Market Volatility
2 min read• Data from the on-chain analytics firm Santiment shows that Litecoin transactions valued at more than $1 million have recently surged.
• These “whale transactions” often cause noticeable effects on the market and could lead to increased volatility for the cryptocurrency.
• A chart from Santiment shows that the whale transaction count has recently hit the highest values observed since December 28.
Recent on-chain data from the analytics firm Santiment suggests that the number of Litecoin whale transactions valued at more than $1 million has recently surged. Such whale transactions, which involve a large amount of coins being transferred, are important to monitor as they can often cause noticeable effects on the crypto market and could lead to increased volatility for the cryptocurrency.
The relevant indicator here is the “whale transaction count,” which measures the total number of Litecoin transactions taking place on the blockchain that involve coins worth at least $1 million. When the value of this metric is high, it means there are a large number of whale transactions happening on the network right now. Such a trend suggests these humongous holders are actively trading currently.
To illustrate this, Santiment has released a chart that shows the trend in the Litecoin whale transaction counts over the last few months. The value of the metric seems to have been quite high in recent days and has even hit the highest values observed since December 28. This would suggest that whales have become active again.
It is also worth noting that the last two spikes in the whale transaction count were followed by significant rises in the Litecoin price. This could indicate that these large investors are bullish on the crypto and are actively buying it. However, the exact impact of the whale transactions on the market is yet to be seen.
Overall, the surge in Litecoin whale transactions is a good sign for the crypto and could potentially lead to further growth in its price in the near future. However, it is still important to keep an eye on the whale transaction count as it could also lead to increased volatility in the market.