LIT Surges 13% as Lighter Launches Token Buyback Program

Lighter's token buyback program has driven a 13% increase in the LIT token price over recent days. On-chain data confirms that both the treasury and the Lighter Assistance Fund have repurchased LIT tokens, directly reducing supply and signaling market confidence. Whale activity, including a $4 million USDC deposit to purchase over 1.285 million LIT tokens, indicates strong conviction in the token's value.

Lighter (LIT) has seen a significant price rally following the initiation of its token buyback program. The protocol began repurchasing LIT tokens using protocol fees, a move confirmed by on-chain data showing purchases made through its treasury wallet. This transparency has reinforced market confidence in the project's commitment to token value.

The buyback program aligns with Lighter's prior promises, showing sustained capital inflows and positive market sentiment. The Chaikin Money Flow indicator has improved, reflecting stronger accumulation and investor support. Additionally, the Money Flow Index (MFI) remains above neutral, indicating ongoing buying pressure without reaching overbought levels.

Whale activity further underscores the bullish sentiment around LIT. A new wallet deposited $4 million in USDC within seven days to purchase 1.285 million LIT tokens at an average price of $2.96, signaling strong confidence in the token's future price appreciation. This whale's continued USDC balance suggests potential for further accumulation, adding to upward price momentum.

What is Lighter's buyback program and how is it affecting LIT's price?

The buyback program involves the Lighter treasury and the Lighter Assistance Fund using protocol fees to repurchase LIT tokens on the open market. These purchases are fully transparent and visible on-chain, which has helped build trust among investors. The program has contributed to a 13% price jump, as traders responded positively to the demonstrated commitment to token value.

The treasury account held approximately 180,733 LIT tokens at the start of the buyback, and these were used in conjunction with USDC from the assistance fund to acquire additional tokens. This combination of treasury and fund purchases has led to a visible reduction in token supply and increased investor confidence.

What does on-chain data reveal about LIT's recent activity?

On-chain data provides clear evidence of the buyback's impact. The treasury spent USDC to buy back 180,700 LIT tokens, while the Lighter Assistance Fund added to this by purchasing an additional 165,790 tokens. These transactions are transparent and publicly visible, reinforcing the credibility of the buyback program.

The Chaikin Money Flow indicator has improved during the rally, showing stronger accumulation and investor support. Earlier signals in early January indicated weak support, but the recent data shows outflows decreasing while prices continue to rise. The Money Flow Index (MFI) remains above neutral, indicating sustained buying pressure without reaching overbought levels.

Why is whale activity significant for the LIT token?

Whale activity has played a crucial role in the LIT price movement. A new wallet deposited $4 million in USDC to purchase 1.285 million LIT tokens within seven days. This large-scale purchase suggests strong conviction in the token's potential and adds further upward pressure to the price.

The whale still holds a significant amount of USDC, indicating the possibility of additional purchases in the future. This accumulation, combined with the buyback program and increased trading volume, has contributed to a bullish outlook for the token. The price has broken above key resistance levels, forming a bullish structure with potential targets near $3.60.

The Relative Strength Index (RSI) remains healthy, suggesting room for further upside as long as the price holds above key support levels. This combination of whale accumulation, transparent buybacks, and strong market indicators supports a positive outlook for LIT in the near term.