Lighter Protocol officially confirmed the launch of its LIT token buyback plan on January 6, which quickly ignited market sentiment and drove a significant surge in LIT price. As of press time, LIT was trading at $3.06, with a 24-hour gain of approximately 16%, making it one of the standout emerging DeFi tokens of the day.
From a market performance perspective, LIT has shown notable volatility over the past week, with prices ranging between $2.33 and $3.37. Following the confirmation of the buyback plan, capital flowed in rapidly, with spot trading volume surging to $157.8 million within 24 hours, representing more than a 10-fold increase from the previous day, indicating significantly enhanced market participation. According to CoinGlass data, the derivatives market has also heated up, with LIT contract trading volume increasing 87% to $21 million and open interest rising 58% to $1.81 million, typically indicating new long positions being established rather than simple profit-taking.
The core driver of this rally stems from Lighter’s clear adjustments to its token economic model. The protocol stated that all fees generated by its core DEX product and future services will be disclosed on-chain transparently and allocated between growth investment and LIT token buybacks based on market conditions. Unlike dividend models, this mechanism chooses to use all revenue for buybacks, thereby continuously reducing LIT’s circulating supply, directly linking the protocol’s actual usage to token demand.
On-chain data shows that Lighter’s treasury currently holds approximately 180,000 LIT tokens and approximately $1.35 million in USDC, available for market buybacks at any time. Based on current revenue levels, some market participants anticipate potential future buybacks of up to 30 million LIT, accounting for approximately 3% of total token supply. Although the specific pace remains dependent on trading activity, the “protocol revenue + token buyback” structure has significantly altered market expectations for LIT’s long-term value and has become a focal point for long-tail keywords such as “LIT buyback mechanism” and “Lighter token economic model.”
From a technical perspective, following LIT’s breakout from the consolidation zone near $2.60, it maintains an overall short-term uptrend with synchronized raises in highs and lows. Price briefly touched the upper Bollinger Band near $3.18, indicating strong upside momentum, but the Bollinger Band is flattening, suggesting a possible period of consolidation or minor pullback in the near term. The RSI indicator, which previously approached 70, has pulled back to around 60, appearing more like healthy cooling rather than a trend reversal.
Key observation levels in the short term are around the $3.00 mark. If LIT can firmly hold above this area, prices may continue to open up more upside room; if it breaks below $2.95, it’s possible to retest the prior demand zone near $2.80. Overall, the implementation of the buyback plan has become the core fundamental variable driving LIT’s movement.
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Hệ thống mua lại Lighter chính thức hoạt động, token LIT tăng vọt 16% trong ngày
Lighter Protocol officially confirmed the launch of its LIT token buyback plan on January 6, which quickly ignited market sentiment and drove a significant surge in LIT price. As of press time, LIT was trading at $3.06, with a 24-hour gain of approximately 16%, making it one of the standout emerging DeFi tokens of the day.
From a market performance perspective, LIT has shown notable volatility over the past week, with prices ranging between $2.33 and $3.37. Following the confirmation of the buyback plan, capital flowed in rapidly, with spot trading volume surging to $157.8 million within 24 hours, representing more than a 10-fold increase from the previous day, indicating significantly enhanced market participation. According to CoinGlass data, the derivatives market has also heated up, with LIT contract trading volume increasing 87% to $21 million and open interest rising 58% to $1.81 million, typically indicating new long positions being established rather than simple profit-taking.
The core driver of this rally stems from Lighter’s clear adjustments to its token economic model. The protocol stated that all fees generated by its core DEX product and future services will be disclosed on-chain transparently and allocated between growth investment and LIT token buybacks based on market conditions. Unlike dividend models, this mechanism chooses to use all revenue for buybacks, thereby continuously reducing LIT’s circulating supply, directly linking the protocol’s actual usage to token demand.
On-chain data shows that Lighter’s treasury currently holds approximately 180,000 LIT tokens and approximately $1.35 million in USDC, available for market buybacks at any time. Based on current revenue levels, some market participants anticipate potential future buybacks of up to 30 million LIT, accounting for approximately 3% of total token supply. Although the specific pace remains dependent on trading activity, the “protocol revenue + token buyback” structure has significantly altered market expectations for LIT’s long-term value and has become a focal point for long-tail keywords such as “LIT buyback mechanism” and “Lighter token economic model.”
From a technical perspective, following LIT’s breakout from the consolidation zone near $2.60, it maintains an overall short-term uptrend with synchronized raises in highs and lows. Price briefly touched the upper Bollinger Band near $3.18, indicating strong upside momentum, but the Bollinger Band is flattening, suggesting a possible period of consolidation or minor pullback in the near term. The RSI indicator, which previously approached 70, has pulled back to around 60, appearing more like healthy cooling rather than a trend reversal.
Key observation levels in the short term are around the $3.00 mark. If LIT can firmly hold above this area, prices may continue to open up more upside room; if it breaks below $2.95, it’s possible to retest the prior demand zone near $2.80. Overall, the implementation of the buyback plan has become the core fundamental variable driving LIT’s movement.