On-chain data shows that the Litecoin whale made a enormous deposit on the Binance cryptocurrency exchange, which may contribute to the decline in the coin’s value.
Litecoin Whale transferred 100,000 LTC to Binance today
According to data from a cryptocurrency transaction tracking service Whale alertover the last day, a enormous transfer was noticed on the Litecoin network.
This transaction involved the transfer of 100,000 LTC via blockchain, worth over US$7 million at the time of transfer. Since the scale of the transfer is so enormous, there was probably a whale behind it.
In general, it’s worth being wary of whale transfers as they can cause confusion in the market. How a move from such a huge holder would affect the asset depends on the intention behind it.
Here are some additional details about the latest Litecoin whale move that may give a clue as to why the investor decided to make this move:
Looks like the transaction only required a negligible fee of 0.008 LTC ($0.56) to be possible | Source: Whale Alert
As shown above, in this move the whale transferred 100,000 LTC to wallets associated with the Binance cryptocurrency exchange. The sending addresses were unknown wallets that were not connected to any centralized platforms.
Such wallets are usually investors’ addresses. These types of transactions, in which coins move from self-holding wallets towards exchanges, are called “exchange inflows.”
The latest stock inflow from Whale suggests that the investor wanted to employ one of the platform’s services, which may include selling. Therefore, the transfer could be bad news for Litecoin.
LTC is down 3% in the last 24 hours despite the market rally
While most cryptocurrency sectors saw gains in the last day, Litecoin was the odd one out as it recorded negative returns.
As the chart below shows, during the recent decline, LTC dropped from above $73 to $68.
The value of the asset seems to have gone through a rollercoaster in the last two days | Source: LTCUSD on TradingView
Litecoin, however, saw a slight rebound from the low as it returned above $70. However, despite this raise, the coin’s price has still dropped by approximately 3% in the last 24 hours.
Given the timing of the whale’s Binance inflow trade, it’s possible that the move was intended to sell after all, as it coincided with the cryptocurrency’s rebound.
The whale could employ this tiny raise to exit the asset, potentially to move on to greener pastures that the rest of the market seems to provide.
In terms of market capitalization, Litecoin only dropped to 20th place on the list of top cryptocurrencies, meaning there are nineteen larger digital assets than today. There is still some gap between LTC and 21st-ranked Uniswap (UNI), so the coin may not be at risk of further decline, at least for now.
The market cap of the asset appears to be $5.2 billion at the moment | Source: CoinMarketCap
Featured photo by Thomas Lipke on Unsplash.com, chart from TradingView.com
