IntoTheBlock, a blockchain data provider, found that a significant amount of Litecoin has been dormant for five years ahead of the upcoming halving event.
IntoTheBlock analysts are divided on the reasons for the dormant Litecoin supply. Some believe it’s a bullish signal, while others think it’s a sign of lost coins.
Proof-of-work cryptocurrencies like DASH and Bitcoin undergo halvings every four years. This programmed action drives up the price of the cryptocurrency by reducing the number of coins that are made available for circulation. DASH recently halved, and Bitcoin is scheduled to do the same in April-May of next year.
Halvings are a way to ensure that proof-of-work cryptocurrencies remain deflationary. Reducing the number of coins that enter circulation every four years, halving can potentially make the cryptocurrency more valuable.
Litecoin is booming, with a surge in hash rate and a significant increase in active wallets, suggesting that investors are bullish on the coin ahead of the halving.
The growth in Litecoin addresses holding 0.001 LTC indicates that investors are optimistic about the coin’s long-term prospects.