The so-called “whales” of the crypto industry, that is, large holders of crypto assets, began to increase investments in altcoins. And it is the interest of large players, according to the Santiment information and analytical platform, that causes an increase in the value of digital assets, writes RBC Crypto.
Santiment specialists pointed out that large Litecoin (LTC) holders have increased their holdings of the token over the past six months by 1.15 million coins (+4.92%), and in the last 7 weeks alone, the increase in their wallet balances was about 0.5% from the entire coin supply. Analysts said on Twitter (the social network is blocked in Russia) that this was the reason for the increase in the LTC rate by 89% since it fell to $50 in early November. By January 31, the value of the asset rose to $95, a daily increase of 2.8%.
Created in 2011, Litecoin is a cryptocurrency that uses the same programming code as Bitcoin, but works with some differences, offering cheaper and faster transactions. The market capitalization of the asset as of January 31 is $6.8 billion, the daily trading volume is $1.1 billion.
One of the oldest investment companies in the crypto industry, Pantera, has once again become interested in investing in digital assets other than Bitcoin and Ethereum, reports The Block. Last spring, Pantera switched from altcoin investments to ETH to avoid losses, but has now begun to return to coins, which, according to Pantera co-founder Joey Krug, “will outperform Ethereum in the upcoming cycle.” No specific assets were named.
Prices for some altcoins at the beginning of this year rose by tens, and even hundreds of percent. Analysts at Santiment pointed out last week that sentiment in the crypto community may signal highs, but if traders do not take into account emotions, then the rise in prices for cryptocurrencies may continue.
Santiment also named the top 10 most developing altcoins. To compile the rating, the analytical company used data on the activity of developers.