According to recent reports, Grayscale Investments has added 174,000 Litecoin (LTC) to its holdings over the past month, bringing its total LTC position to 1.44 million coins. This acquisition represents approximately 80% of all LTC mined in the same period. The total value of Grayscale's Litecoin holdings now stands at just over $248 million.
Despite this significant accumulation, LTC's price has remained largely unchanged. Data from Messari shows that LTC only briefly exceeded the $200 mark between February 12 and February 22, before falling back below that level. As of this writing, LTC is trading near $190.
Why No Price Pump? Community Questions Grayscale Effect
Several Twitter users have questioned the lack of price movement following Grayscale's massive buying. User Carolyn Bamberger asked: “Why hasn't the price pumped?” The Litecoin team responded:
“Large orders like these are usually purchased through an OTC desk to avoid immediate market impact. Some speculate that the supply shock may be delayed.”
However, not everyone is convinced. Some traders believe Litecoin lacks the strong fundamentals seen in Ethereum or Bitcoin. Others remain optimistic, expecting a delayed price spike.
Comparison: Grayscale Also Buys ETH and BTC
During the same period, Grayscale added over 243,000 ETH, bringing its total ETH holdings to 3.17 million, valued at around $4.86 billion. In contrast, only 7,169 BTC were added to its Bitcoin holdings, totaling at least 655,640 BTC. The contrast highlights that while Grayscale continues to accumulate, the market reaction to Litecoin remains muted.
Overall, the anticipated supply shock from Grayscale's LTC buying has yet to materialize, and the altcoin's price remains range-bound near $190.