Litecoin’s price action in February has been somewhat positive. Litecoin is currently up by 6.4% since February 1, giving its holders something positive to hold on to. Speaking of holders, recent on-chain data has shown the long-term sentiment among Litecoin holders in the middle of the constantly shifting dynamics of the cryptocurrency market.
According to on-chain analytics platform IntoTheBlock, Litecoin investors have one of the highest holding times amongst digital assets. Litecoin holders have an average holding time of 2.4 years, putting the holding mentality on par with Bitcoin
Litecoin Investors Are In It For The Long Haul
Activity surrounding Litecoin may be relatively quiet when compared with the rest of the crypto industry, but the holding mentality remains strong. So much so that more than 20% of Litecoin addresses have held their cryptocurrencies for more than five years.
Ever wondered about the commitment of Litecoin holders? Here’s a snapshot of their holding patterns
The average holding time is 2.4 years
— IntoTheBlock (@intotheblock) February 23, 2024
The crypto industry is known for blessing those who hold on to their digital assets for long. History shows that patient investors who hold for years, not months, often achieve the biggest returns. If an investor were to sell their LTC holdings today after keeping them untouched for five years, they would record a profit of almost 80%.
While this is small compared to what other top digital assets like Bitcoin and Ethereum would generate, it demonstrates the potential for Litecoin to generate profits despite a wider decline from the all-time highs of many cryptocurrencies.
The average holding time of transacted LTC coins is one month, with a general average LTC holding time of 2.4 years. This puts Litecoin above other large market-cap cryptos like Ethereum and Dogecoin and only behind Bitcoin in terms of holding mentality.
Current State Of Litecoin
Much has changed since Litecoin launched in 2011 with a maximum supply of 84 million LTC as a silver to Bitcoin’s gold. Recent market dynamics and the inflows into other cryptocurrencies which have developed a vast following and real-life utility have seen Litecoin falling in market cap rankings over the years.
Litecoin is now in the 21st position in terms of market cap, sitting behind meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB), and layer-2 tokens like Polygon (MATIC) and Chainlink (LINK).
At the time of writing, Litecoin is trading at $69.90, up by 6.39% in the past 30 days. Notably, the crypto has traded below $80 for the past six months, but holders remain unfazed. Short-term traders come and go, but Litecoin’s dedicated investors are in it for the long haul. Their diamond hands and vision for the future suggest that Litecoin still has room to grow.
Featured image from Pixabay, chart from TradingView
by Scott Matherson via Bitcoinist.com
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