On-chain data shows that the Litecoin whale has withdrawn about $20 million in LTC from Binance, which could be bullish for the asset price.
The Litecoin Whale Just Made a Big Exit From Binance
According to data from cryptocurrency transaction tracker service Whale Alert, massive transfers have been seen on the Litecoin blockchain over the past day.
The transaction saw the movement of 286,482 LTC across the network, worth about $20.6 million when the move went through. Given this large scale, there may have been a whaling organization behind it.
Whales are considered to be influential creatures in the blockchain due to their large areas, so their transactions can be worth keeping an eye on as they may end up causing fluctuations in the price of the asset.
How whale transmission will actually affect the market depends on its target. Often, it’s hard to tell why the transfer was made, but address information can sometimes provide some clues.
Below are details of a recent transfer that may shed some light on your context.
Looks like this transfer only needed a negligible fee of 0.00000896 LTC to go through | Source: Whale Alert
As seen above, the sending address of this whale Litecoin transaction was a wallet attached to the cryptocurrency exchange Binance. The recipient was an unknown wallet.
Anonymous wallets are not affiliated with any known central platform and may be investor addresses. Transfers like these from an exchange to a mutual fund are exchange outputs.
Exchange exits can be a sign of new purchases in the market, or at least, investors who plan to hold it for the long term. As such, a transfer of this type may have potential for property.
So, if the whale made this massive exit from the exchange for hoarding purposes, Litecoin would naturally see positive results from it. There is also a situation, however, where the whale has made withdrawals by selling over-the-counter (OTC) deals instead.
In such a case, the result on cryptocurrency can be bearish. It remains to be seen what impact, if any, this Litecoin whale movement will have on its price.
In other headlines, LTC recently went on to become the world’s most active blockchain, as the coin’s official X handle was shared in a post.
The data for the LTC active addresses over the past few moths | Source: Litecoin on X
As seen in the chart above, the number of daily active Litecoin addresses has increased recently and stands at 802,470. Active addresses refer to those who participate in other network activities on a daily basis.
The number of these addresses indicates the traffic the chain receives. At current levels, LTC sees a higher number of active users than the likes of Bitcoin (BTC) and Ethereum (ETH).
The highest amount of LTCs
At the time of writing, Litecoin is trading around $71, down more than 4% in the past week.
The price of the asset appears to have gone down in recent days | Source: LTCUSD on TradingView
Featured image from Dall-E, IntoTheBlock.com, whale-alert.io, chart from TradingView.com
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