Lighter (LIT) Token Surges 13–37% as Buyback Program Reduces Supply

Lighter’s LIT token surged between 13% and 37% in early January 2026 after the protocol initiated a buyback program. Whale activity, including a $4 million USDC deposit for 1.28 million LIT tokens, suggests strong investor confidence in the token’s long-term potential. The buyback program aims to allocate 50% of protocol fees to token repurchases, with the goal of reducing circulating supply and increasing token value for holders.

Lighter’s LIT token has seen significant price momentum in early January 2026, with multiple reports highlighting a 13–37% surge following the launch of a buyback program. The initiative channels protocol fees from the decentralized exchange (DEX) and future services into on-chain token repurchases. This move aligns with broader DeFi strategies to stabilize token value and reward long-term holders.

Whale activity has further amplified this trend. One large deposit of $4 million in USDC resulted in the purchase of 1.28 million LIT tokens, while another whale sold $4.86 million in WBTC to acquire 1.119 million LIT tokens. These transactions indicate strong conviction in the token’s price trajectory.

Lighter’s treasury now holds $1.35 million in USDC for immediate buybacks, and projections suggest up to 30 million LIT (3% of total supply) could be repurchased. This has led to increased trading volume, with LIT’s 24-hour volume jumping nearly 89% to $36 million. Such activity signals renewed interest from both retail and institutional investors.

Why Is the Buyback Program Significant?

The buyback program is a key step in reducing LIT’s circulating supply, which ties token demand directly to protocol usage and creates sustained buying pressure. By allocating 50% of protocol fees to buybacks, Lighter aims to create a more stable and value-accruing ecosystem for token holders.