Litecoin’s New King Whale — $1.1Bn Transacted on the Litecoin Network in a single day.
On the 30th November, 2018, the Litecoin Network saw a sudden increase in the total value transacted according to data provided by BitInfoCharts. The network saw almost 60% of Litecoin’s entire market cap or around 35,400,000 LTC moved in just one day and hints at a new King Whale.
The last time $1bn+ was moved over the Litecoin Network in a single day was back in February of 2018 following the initial stages of the collapse when panic swept across the cryptocurrency markets. Since then the network has been consistently transacting around $100m on a daily basis despite price fluctuations, potentially indicating a more fundamental use rather than speculative of the network.
A significant portion of the volume appears to have come from a single entity as over 40 new wallets have just entered the top 100 rich list on the network all with a balance of 300,000 Litecoin (~$10,000,000) each, which accounts for over 12M Litecoin (~$372M at time of transfer, $31 per coin).
Analysis of global exchange trading does not account for this sheer volume and yet neither does it appear to be a direct consolidation of funds from other addresses. It’s also not yet clear whether this is an exchange moving its users funds offline or OTC traded funds being moved into private wallet addresses. If it were, however, that may indicate that the entity behind it believes we are at or near to the bottom of the market to confidently such a volume. It also means this entity, if it is one person or company now owns ~15% of the total supply of Litecoin that will ever exist making them the new King Whale from the evidence available to us.
If this is not an exchange then 12M Litecoin are now out of circulation, alleviating a significant potential selling pressure on the open market. If it is however an Institution, one could theorise that these addresses may be potentially owned by Bakkt or Fidelity, pre-emtively taking a large stake in the market in preparation for their respective launches early next year. This is pure speculation however, and until more evidence comes forward there is no certainty.
It’s not out of the realm of possibility that this is a private individual, we are already aware of people such as ‘Spoofy’ and ‘Loaded’ on Bitcoin who hold large quantities of coins, perhaps Litecoin now has its own and maybe someday they might come forward.