A new whale Litecoin shifts 60% of the market capitalization of coins in a single day

A new Litecoin whale has emerged from nowhere. On November 30, about 35.4 million LTC, representing 60% of the total capitalization of the currency, were moved to an address. The transactions were revealed by BitInfoCharts which amounted to as much as $ 1.1 billion. Global trading does not seem to be the reason behind these transactions.

Litcoin.com initially tweeted the news that was later retweeted by Charlie Lee, the creator of Litecoin:

Litecoin's new whale – $ 1.1 billion traded on the Litecoin Network in a single day.#ltc #litecoin #btc #bitcoin #cryptocurrency #Crypto #blockchain

🗞️ https://t.co/thAEPr7CuN pic.twitter.com/w3UTNbNPPE

– Litecoin.com (@LitecoinDotCom) 3 December 2018

A new entity emerges from the shadows

The new whale Litecoin could have added 40 new portfolios to Litecoin's top 100 list. All portfolios contain around 300,000 Litecoin each. The November 30th transactions are the most important since February, when over $ 1 billion has been moved. This transaction took place during the initial stages of the collapse of the cryptocurrency market when panic began, and the price of coins began to drop dramatically from historic highs.

Since then, the network has carried out transactions for around $ 100 million a day, despite falling prices, which means that there may be fundamentally strong activities that drive the use of money. The activity could come from the adoption of Litecoin rather than from speculation on its price.

Does the Portfolio belong to an exchange?

Several possibilities have been discussed regarding the identity of the new Litecoin whale. In general, trading trading does not appear to be behind the sudden spike in the number of transactions on the network. No activity points to exchanges behind transactions, nor is there sufficient evidence that someone is consolidating funds from different portfolios.

A second possibility is that Bakkt and Fidelity, intended to move into the cryptographic market, are pre-empting some coins in preparation for their launch. The new whale could also be an individual or an institution that believes that the price of money has hit the bottom and is now accumulating aggressively.

Another theory suggests that an exchange could shift its users' funds offline or there may be some entity that is moving its LTC funds from OTC trading to portfolios.

The identity of the whale is currently uncertain. However, it should be noted that the entity now holds 15% of Litecoin's total supply. This could help alleviate the selling pressure by lowering the price of the currency.

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