LIT Surges 13–37% as Lighter Launches Treasury Buyback Program

Lighter initiated a treasury buyback program using 50% of DEX fees to repurchase LIT tokens, aiming to reduce supply by up to 3% according to reports. The buyback program has already repurchased over 180,000 LIT tokens at a cost of around $550,000 as of early January 2026 as data shows. Whale activity, including a $4.86 million WBTC conversion to purchase 1.119 million LIT tokens, has reinforced investor sentiment and demonstrated institutional interest according to analysis.

Lighter launched a buyback program in January 2026, allocating 50% of protocol fees from its decentralized exchange and future services to on-chain repurchases of LIT tokens. The initiative aims to reduce the circulating supply by up to 3%, aligning token value with protocol growth and creating sustained buying pressure. As of early January 2026, the treasury had repurchased over 180,000 LIT tokens at a cost of around $550,000. Whale activity further reinforced market confidence, with a $4.86 million WBTC conversion used to purchase 1.119 million LIT tokens according to reports.

Institutional and high-net-worth investors were also active, with one wallet holding approximately 13.2 million tokens valued at nearly $40 million. Lighter confirmed that the treasury account would track protocol revenue and buyback activity, reinforcing transparency and long-term alignment with token holders. On-chain data revealed that Lighter's treasury account had accumulated more LIT tokens, which market participants interpreted as part of the buyback activity according to data.

Lighter later confirmed through an official post that the treasury account would reflect both protocol revenue and token buyback activity, which can be tracked on-chain. As of Monday night, the account held 180,588 LIT tokens valued at approximately $548,987. The protocol has stated that it will use revenue generated from trading fees and future products to support both growth and buybacks according to the protocol.

What is the Impact of the Buyback Program on LIT Token Price?

Lighter's LIT token has seen price increases ranging from 13% to 37% following the initiation of the buyback program. Whale activity and institutional investments reinforce market confidence in LIT's trajectory according to analysis. Whale activity, including a $4.86M WBTC conversion to purchase 1.119 million LIT tokens, has further fueled trading volume and investor interest. Analysts note that while the program has improved technical indicators and reinforced investor sentiment, large whale holdings could introduce volatility if sold according to reports.

The buyback program has driven a 13–37% price surge in LIT to $3.11 as of early January 2026. Whale activity, including a $4.86M WBTC conversion and a $4M USDC deposit to acquire LIT tokens, has reinforced investor sentiment and demonstrated institutional interest according to analysis. The buyback program is transparent, with on-chain data tracking treasury wallet activity. As of January 6, 2026, the treasury had repurchased over 180,000 LIT tokens at a cost of around $550,000. Institutional and high-net-worth investors, including those holding 13.2 million LIT tokens valued at nearly $40 million, have shown strong belief in the token's long-term potential according to reports.

What Is the Role of Whale Activity in the LIT Price Surge?

Whale activity has played a significant role in the LIT price surge. Whale activity, including a $4.86M WBTC conversion and a $4M USDC deposit to acquire LIT tokens, has reinforced investor sentiment and demonstrated institutional interest according to data. Whale deposits totaling $10M in USDC to acquire 3.44M LIT tokens suggest strong conviction in the token's future value, especially with its imminent listing on Coinbase. Institutional investments and expanded trading features like 24/5 equity perps are further enhancing Lighter's appeal and liquidity according to reports.

Lighter's LIT token has rebounded 37% from its January 1 all-time low of $2.33 following the initiation of a buyback program using exchange revenues. Whale activity, including a $4M USDC deposit to purchase 1.28M LIT tokens, signals strong market confidence and potential price growth. The LIT token serves as a governance and staking mechanism, with 250 million tokens airdropped to early users and a buyback strategy aimed at reducing supply and increasing value for investors according to protocol details.

What Is the Long-Term Implication of the Buyback Strategy for LIT Holders?

The long-term implication of the buyback strategy for LIT holders is to stabilize and increase token value through supply reduction. Lighter's buyback strategy, funded by 50% of DEX fees, is designed to reduce the LIT supply by up to 3% and stabilize its value according to reports. Whale activity and institutional investments reinforce market confidence in LIT's trajectory. Lighter confirmed that the treasury account would track protocol revenue and buyback activity, reinforcing transparency and long-term alignment with token holders according to official confirmation.

Lighter's buyback program, funded by 50% of DEX fees, aims to reduce the circulating supply of LIT by up to 3%. The treasury account, labeled as Account #0, has been used to accumulate LIT tokens, with the first wave of buybacks already visible in on-chain data. As of the latest on-chain data, the Lighter treasury holds over 180,733 LIT tokens valued at $564,609 according to on-chain data.