Santiment analysts report growth of "whales" investments in altcoins
According to analysts, it was the interest from major players in the crypto industry that caused the growth of digital coins
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 big players that is causing the rise in the value of digital assets, according to information and analysis platform Santiment.
Santiment experts pointed out that large holders of Litecoin (LTC) have increased their holdings of the token by 1.15 million coins (+4.92%) over the past six months, and in the past 7 weeks alone, their wallet balances have increased by about 0.5% of the coin's total supply. Analysts said on Twitter (the social network is blocked in Russia) that this has caused LTC to rise 89% since it fell to $50 in early November. By January 31, the value of the asset had risen to $95, a daily gain of 2.8%.
The cryptocurrency Litecoin, created in 2011, uses the same programming code as bitcoin, but works with some differences, offering cheaper and faster transactions. The asset has a market capitalization of $6.8 billion as of Jan. 31 and daily trading volume of $1.1 billion.
One of the oldest investment firms in the crypto industry, Pantera has renewed its interest in investing in digital assets other than bitcoin and Ethereum, The Block reports. Pantera switched from investing in altcoins to ETH last spring to avoid losses, but has now begun to return to coins that, according to Pantera co-founder Joey Krug, "will outperform Ethereum in the coming cycle." No specific assets were named.
Prices of some altcoins rose by tens or even hundreds of percent earlier this year. Santiment analysts last week pointed out that sentiment in the cryptocurrency community may signal tops, but if traders don't take emotion into account, the rise in cryptocurrency prices could continue.
Santiment also named the top 10 fastest-growing altcoins. To compile the ranking, the analytical company used data on the activity of developers.
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