Litecoin HODLers Currently Control The Majority Of Supply

On-chain data shows HODLing behavior on the Litecoin network has remained strong recently despite the plunge that LTC's value has observed.

On-chain data shows that HODLing behavior on the Litecoin network has remained strong recently, despite the plunge that LTC’s value has observed. This is evident from the fact that HODLers still control the majority of the asset’s supply.

According to a recent post by Litecoin on X, the asset supply is currently distributed among three main cohorts of investors, classified based on holding time: Traders, Cruisers, and HODLers.

Traders are defined as those who purchased their coins within the past month, while Cruisers are those who held their coins for over a month but less than a year. HODLers, on the other hand, are investors who held their coins for over a year without moving them even once.

A chart from IntoTheBlock, shared by Litecoin X, showcases how the supply held by each of these cohorts has changed over the course of Litecoin’s history. Here's what the platform’s analysis reveals:

“This metric showcases the interesting dynamic between Litecoin Traders, Cruisers, and HODLers. As you can see, the supply held by Traders has observed an increase recently, which suggests that older cohorts have been breaking their dormancy. It’s also visible, however, that the Cruisers have witnessed their supply moving sideways at the same time, which may imply that the coins on the move were older than one year (hence, HODLers).”

The implication here is that HODLers may have been selling their coins during this period. While these investors are generally known for their strong conviction and long-term outlook, it’s not uncommon for them to choose to take profits during bull runs.

It's also worth noting that the decrease in HODLer supply hasn’t been anything too drastic, and more importantly, the latest crash in Litecoin’s price hasn’t caused these investors to panic and sell.

Following the decrease, HODLers now carry 40.5 million LTC in their wallets, which is almost 54% of the total LTC supply. A significant portion of this supply is also actually much older than one year, with Litecoin X revealing that the average holding period on the network is 2.4 years per token.

Something else to note is that while selling registers immediately in the supply charts of the older cohorts, buying doesn’t work the same way. Whenever the Cruisers or HODLers see an increase in their supply, it doesn’t necessarily mean that accumulation is occurring in the present, but rather that it happened one month or one year ago.

This is because coins have to age up sufficiently first in order to be counted among these cohorts. In contrast, transactions instantly reset their age back to zero, which is why selling is immediate.

At the time of writing, Litecoin is trading around $102, down 15% over the last week.