Litecoin (LTC) has registered unusual activity on the Binance exchange. Whale Alert on X, the renowned blockchain transaction tracker, spotted the movement of 407,510 LTC valued at approximately $35.4 million. The massive LTC funds were moved from Binance to an unknown wallet.
Possible reasons behind move
The huge transfer of Litecoin has sparked speculation on its possible reasons. Some have speculated that the move might be linked to a whale stashing it away, while others consider it a new over-the-counter (OTC) trade.
🚨 🚨 407,510 #LTC (35,430,328 USD) transferred from #Binance to unknown wallethttps://t.co/ador6CIJIG
— Whale Alert (@whale_alert) November 19, 2024
Regardless of the reason behind the move, experts say it signals renewed growing interest in Litecoin.
Typically, moving funds to a personal wallet indicates the investor’s intent to hold onto the asset. That highlights confidence in Litecoin’s long-term value. This is also a bullish sign, as the wallet owner has decided to keep the coin in their custody while watching market trends.
Interestingly, the transfer occurred despite a 3.7% decline in the spot value of Litecoin. According to data, LTC is trading at $86.65 as of writing time. The market volume has dropped significantly by 17.41% to $1.01 billion.
In the past 24 hours, Litecoin has fluctuated from a high of $89.91 to its current price value.
Institutional interest boosts Litecoin’s prospects
Market indicators that might have revived interest in the 13-year-old cryptocurrency include the potential for a Litecoin exchange-traded fund (ETF). Due to this institutional interest, Litecoin registered unexpected inflows in late October. The cumulative inflow gained in the last week of last month stood at $1.8 million.
Notably, Canary Capital, a crypto investment firm, has filed an application to launch a Litecoin ETF in the U.S. The investment firm emphasized that the decision flowed from Litecoin’s longevity in the cryptocurrency space.
According to Canary Capital, Litecoin has a “proven record of security and reliability,” a trend now attractive to whales.