LIT (Lighter) increased by 11.71% in the last 24 hours

Gate News Bot Message, January 6th, according to CoinMarketCap data, as of press time, LIT (Lighter) is currently trading at $3.04, up 11.71% in the past 24 hours, with a high of $4.04 and a low of $2.30. The 24-hour trading volume reached $35.5 million. The current market cap is approximately $759 million, an increase of about $79.6 million from yesterday.

Lighter is a zero-knowledge rollup based on Ethereum, built with custom ZK infrastructure, inheriting Ethereum’s security and composability. As a fully verifiable decentralized exchange, it is optimized for zero-fee trading. Lighter has strong processing capabilities, handling tens of thousands of orders and cancellations per second with millisecond latency. Its infrastructure is highly optimized for order matching and proof correctness, enabling zero fees for retail traders and highly competitive fees for high-frequency traders. All operations, including matching and settlement, are cryptographically proven and publicly verified on Ethereum, allowing users to securely access funds via Ethereum. Lighter has received support from top venture capital firms such as Founders Fund, Ribbit Capital, and Haun Ventures.

Recent Important News about LIT:

1️⃣ Token issuance and large-scale airdrops become the core market drivers

LIT officially launched on December 30th, accompanied by a historic-level token airdrop to community users. According to on-chain data, the airdrop totaled $675 million, making it the tenth-largest airdrop in cryptocurrency history by dollar value. The airdrop allocated 25% of the total LIT supply to early participants, with about 75% of recipients choosing to hold the tokens, and 7% of addresses further increasing their holdings on the secondary market, indicating continued confidence in Lighter’s perpetual contract DEX model and token prospects. This massive liquidity release directly fueled market enthusiasm and price volatility after LIT’s launch.

2️⃣ Multi-chain exchange deployment and institutional capital influx create dual support

Since TGE, multiple exchanges such as Gate and Backpack have quickly launched spot and perpetual contract trading for LIT. Gate also launched a supported 1-50x leverage official LITUSDT perpetual contract. This rapid multi-chain, multi-exchange deployment expanded liquidity supply and attracted significant institutional and whale capital. Large entries include Justin Sun depositing about $200 million into Lighter and purchasing LIT, a whale spending $3.36 million to buy 1.119 million LIT, and a newly created address spending $2.89 million to acquire 991,458 LIT, reflecting strong institutional confidence and demand for Lighter’s ecosystem. Such structural capital inflows provide important short-term support for the price.

3️⃣ Platform trading volume surpasses industry leader, signaling changes in the sector landscape

According to DeFiLlama, Lighter’s perpetual contract trading volume in the past 30 days reached approximately $198 billion, surpassing the long-standing leader Hyperliquid (~$166 billion). Meanwhile, Aster’s 30-day trading volume is about $174 billion, overtaking Hyperliquid. This shift indicates that Lighter is rapidly capturing market share in on-chain perpetual contracts through low fees and incentive mechanisms, fundamentally changing the competitive landscape of the Perp DEX sector. Continued growth in trading volume will support platform TVL and fee revenue, reinforcing LIT’s long-term value as an infrastructure token.

4️⃣ Protocol fee buyback mechanism initiated to release token value and maintain confidence

Lighter has begun using protocol-generated fees to buy back LIT tokens. To date, approximately 180,493 LIT have been repurchased and held, valued at about $54,000 at current prices. This mechanism demonstrates the platform’s commitment to using trading revenue to sustain token value, reflecting a sustainable revenue distribution model. As trading activity and fee income increase, buyback scale is expected to grow, providing long-term support for LIT.

5️⃣ Market participants remain cautious but buying momentum gradually strengthens

In the derivatives market, bearish pressure remains significant — a whale has become the largest short position holder on Hyperliquid with 1.11 million LIT; the “Shanzhai Air Force” has accumulated about $9.3 million worth of LIT shorts and continues to add. Meanwhile, large on-chain long positions and improved capital flow indicators suggest buyers are gradually absorbing selling pressure. The Chailin capital flow indicator showed a clear bullish divergence from December 30th to 31st, with funds rising despite price declines, indicating increasing accumulation on dips. This tug-of-war between bulls and bears, with growing absorption strength, provides a basis for short-term price stability.

6️⃣ Tokenomics design alleviates long-term supply pressure

The total supply of LIT is held 50% by the team and investors (26% team, 24% investors), with all tokens subject to a one-year lock-up followed by a three-year linear unlock. This mechanism helps delay short-term supply shocks. Although the initial 25% of ecosystem tokens were released immediately, the lock-up schedule provides a structural easing of future selling pressure, reducing long-term concerns about token economics.

This news is not investment advice; please be aware of market volatility risks.