40 million Litecoins have remained dormant for over a year.

While markets are nervous about speculation, more than half of all circulating Litecoins appear to be quietly and secretly locked up, according to data insights provided by bitinfocharts.

The trend of Telechain inactivity has been steadily increasing and can be seen in other digital assets, most notably Bitcoin. Likewise, over 10 million Bitcoins have existed for over a year.

Most of these Litecoins appear to have been locked up during the November/December 2018 period, when the market reached its current low point in this cycle. It may be a coincidence, but the price correlation appears to support the idea that a lot of accumulation occurred during this period.

We know that Coinbase holds at least 12 million of these coins on behalf of its users, as noted in a previous study conducted by Litecoin.com in December 2018. We are not aware that the other addresses listed are owned by other larger companies. Although there is a very high possibility of service or exchange.

Even taking this into account, the main conclusion that can be drawn from this data is that there is a significant accumulation of coins currently held by strong hands and long-term bulls, eliminating any potential downward pressure on the market.

If we go back to the peak of the last bull market two years ago, we see that nearly 15 million Litecoins remained inactive. As of now, as of early 2017, there are more than 4 million Litecoins sitting motionless, an unknown number may have been burned, and the remainder are likely in the hands of unwavering early adopters.

Public data like this provides valuable insight into network participation and is unique to public blockchain assets. While many rely on TA to analyze price movements, chain data may hold the key to longer-term trust and direction.