Final answer:
The statement is true; the hippocampus is involved in LTD and short-term memory consolidation.
Step-by-step explanation:
The statement that the hippocampus is a prominent site where long-term depression (LTD) takes place and is also crucial for the consolidation of short-term memory is true.
The hippocampus is involved in various aspects of memory processing, including the encoding of new memories and the consolidation of short-term to long-term memory. LTD, a process of synaptic weakening, is an important mechanism for learning and memory, as it helps prune less important synaptic connections, highlighting the significance of stronger synapses established via long-term potentiation (LTP).