Litecoin (LTC), one of the oldest and most popular cryptocurrencies, has been experiencing a surge in whale activity lately.
Whales Transfer $211 Million Altcoins Within Minutes
According to Whale Alert data, a total of more than 2.4 million LTC (worth over $211 million at the time of this writing) large LTC transactions have been detected among anonymous wallets.
The initial transaction involved 786,933 LTC (worth $69.1 million), followed by 644,985 LTC (worth $56.6 million), 551,980 LTC (worth $48.4 million), and 423,692 LTC (worth $37.2 million). These transactions took place within a few hours on May 26, 2023.
The reason behind these major movements in LTC is not fully known, but some speculations are that it could be related to Litecoin's halving event in August 2023.
The halving event is a mechanism designed to control inflation by reducing mining rewards by 50% every four years (or every 840,000 blocks).
The next Litecoin halving event will reduce the block reward from 12.5 LTC to 6.25 LTC per block. This means that the supply of new LTC will decrease, while demand may remain stable or increase, putting upward pressure on the price. Historically, halving events have been bullish for cryptocurrencies as they have created a sense of scarcity and anticipation among investors and miners.
However, not everyone is optimistic about the halving event and its impact on Litecoin. Some critics argue that halving events are already priced in by the market and will not necessarily lead to higher prices in the long run.
*Not investment advice.