Recent analyses of on-chain data reveal that Litecoin holders, commonly referred to as HODLers, are maintaining their commitment to the cryptocurrency even though its market value has dropped.
Current Distribution of Litecoin Among Different Holder Groups
A post shared by Litecoin’s official account on a social media platform highlights the distribution of Litecoin across various investor groups. These groups have been categorized based on how long the investors have held the assets.
The investor groups are divided into Traders, Cruisers, and HODLers. Traders represent those who have acquired their coins in the last month. This group includes newcomers and those engaging in short-term trading, leading to a highly active supply.
Once investors hold onto their Litecoin past a month without selling, they transition into the Cruisers category. This group reflects those with a longer but yet unresolved commitment to holding the asset.
The most committed investors, who keep their holdings for over a year without transactions, move on to the HODLers category, demonstrating true commitment.
Illustrated below is a chart from the market intelligence platform, IntoTheBlock, shared via Litecoin’s X account. It details the historical shifts in the coin supply across these groups:
The graph reveals an uptick in the holding by Traders, indicating a move from older investment categories. Meanwhile, the Cruisers have remained steady, suggesting the coins being moved are from the HODLers group, indicating possible selloffs.
While HODLers typically stick to their holdings, selling can occur during profitable market conditions. Nevertheless, the decline in their holdings is marginal, showing no panic-driven selling amid Litecoin’s recent price slump.
As of the latest data, HODLers possess 40.5 million LTC, nearly 54% of the overall supply. Many of these coins have been held longer than a year, with an average holding duration of 2.4 years.
One important aspect to understand is while selling reflects instantly on supply charts, buying does not. An increase in Cruisers or HODLers supply suggests past accumulation, as coins must mature over time to be considered part of these groups. In contrast, selling impacts their age and supply instantly.
Litecoin’s Current Price Situation
As it stands, Litecoin is currently priced around $102, which represents a 15% decrease over the past week.
The recent decline in Litecoin’s price is apparent in its trend over the past several days.
Featured image courtesy of Dall-E, market data via IntoTheBlock.com, and chart from TradingView.com.
