Although it may not always look like it, plenty of people appreciate Litecoin. The silver to Bitcoin’s gold has always remained relevant, despite few exciting developments. Judging by the number of “hodled coins”, things continue to look up for LTC.
Litecoin’s Hodled Coins on the Rise
There are many different ways to invest in cryptocurrencies. Some people want to buy and sell immediately to chase down profits. Others see it as a long-term commitment, resulting in a certain percentage of the supply being “locked up”. Either approach is viable, depending on personal expectations and preferences. There is no “wrong” way to handle crypto assets, although no two outcomes will be the same.
According to the chart below, the amount LTC labeled as “hodled coins” is on the rise. This trend has been apparent for a while now, yet keeps trending higher virtually every week. For current Litecoin speculators, this will be pleasant news. This approach removes liquidity from the open market, and potentially drives the price higher.
At the same time, this metric is not entirely correct. More specifically, it also includes coins “lost” over the years. Losing crypto assets can be explained through sending funds to a wrong wallet, or losing access to a wallet completely. Unfortunately, those things still happen in this modern day and age. Cryptocurrencies offer freedom, but also come with responsibilities.
Considering how there are now nearly 20 million LTC that have been either lost or are still holded coins, an interesting situation is created. Litecoin will have four times the supply of Bitcoin. Even so, having over 25% of the supply not moving for the past three years is significant. It makes LTC a lot more scarce than most people realize.
Ongoing Network Growth Continues
To some, this may seem as if only long-term investors and miners are interested in Litecoin. The reality, however, is very different. Looking at the number of active addresses, there has been ongoing growth for Litecoin. This trend noted a steep drop-off between 2018 and early 2020, but is now moving in the right direction again.
In the price department,there are still some dips to overcome. Litecoin is down by 16.8% for the past 365 days, which isn’t ideal. Owners of hodled coins will not be too bothered by this trend.
That said, a lot of markets have yet to return to their values recorded a year prior. Returning to the all-time high of $360.66 will be a tall order, but one never knows what the future may bring.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at email@example.com