Over the past five months, Litecoin (LTC) has fallen in value by about 55%.
While bitcoin (BTC) has been adding value since October, LTC, on the other hand, is in a stagnation phase. During the week, it strengthened by only 5% to $74.
By comparison, bitcoin and ether (ETH) have soared in value by more than 12% over the same time.
With the decline in value, LTC holders are exiting the asset. Santiment found out that over the past ten days, the number of wallets with different amounts of cryptocurrency has decreased by 2.13%.
And the vast majority of the closed addresses had a minimal stock of LTC. This shows the disappointment of small investors, who are no longer expecting a spurt of litecoin in the coming months, experts say.
The main buyers of LTC that entered the exchanges were whales and sharks set up to hold the altcoin for the long term.
According to Santiment, the capitulation of small addresses is accompanied by high network activity. The number of wallets sending and receiving funds daily reached 1.27 million on Dec. 7, a new record for litecoin.
Address activity in weekly terms is at its highest level since May 2023. In seven days, 3.69 million wallets redistributed funds online, analysts said.