LIT Price Drops Amid Staking Launch and Broader Market Pressure

Lighter’s LIT token dropped nearly 15% in 24 hours following the launch of its staking program according to reports. The decline is attributed to post-launch selling, profit-taking, and broader market volatility as reported. The staking rollout introduces new utility for LIT holders, allowing them to earn rewards and access financial products like LLP according to data. The staking mechanism allows users to stake 1 LIT to unlock up to 10 USDC for deposit, enhancing risk-adjusted returns and aligning LIT holders with LLP participants as noted. Staking also brings fee incentives, with premium market makers and HFT firms receiving discounts on adjusted fee tiers according to reports. Retail trading remains free, and users staking 100 LIT enjoy zero-fee withdrawals as reported. Despite these features, the token’s price decline reflects ongoing downward pressure from post-launch selling and distribution according to analysis. Lighter has initiated buybacks but has not yet offset the selling pressure as detailed. The platform remains competitive in the perpetual swaps market and recently raised $68 million at a $1.5 billion valuation according to reports. Lighter’s LIT token also experienced a sharp decline following its token generation event (TGE), dropping from a peak of $4.04 to $2.05 as reported. The decline has raised concerns about the platform’s long-term sustainability and competitive edge according to analysis. Trading volume dropped from over $10 billion to $2-4 billion, and key metrics like new users and total value locked (TVL) have declined as reported. Critics argue that key metrics like new users and total value locked (TVL) have declined, indicating a lack of long-term viability according to analysis. HyperliquidX is monetizing its trading volume at a rate 10 times higher than Lighter, emphasizing the need for Lighter to innovate beyond fee undercutting according to reports. Lighter has expanded its offerings, including tokenized stocks and multi-signature wallet support, to strengthen its long-term foundation as reported. Despite these efforts, the platform must move beyond trading revenue to secure market share according to analysis. Lighter’s LIT token slid sharply after breaking below a key support level of $2.30, extending its post-launch sell-off and reinforcing bearish pressure as reported. At the time of reporting, LIT traded at $2.07, down 20% in 24 hours and 31% in a week according to data. Spot trading volume declined 64% to $15 million, reflecting reduced demand as reported. However, derivatives activity remained active, with perpetual trading volume jumping nearly 118% to $21 million and open interest increasing by 47% according to data. These figures indicate most positioning is focused on short-term momentum rather than long-term exposure according to analysis. Despite a temporary price rebound fueled by whale activity and a treasury buyback program, the momentum faded as early holders sold as reported. Lighter has introduced tokenized stock offerings and multi-signature wallet support, but these updates have not yet changed near-term sentiment according to data. Technical analysis shows a bearish trend on the 1-hour chart, with prices forming lower highs and lower lows after failing at the $3.10–$3.20 zone as reported. Lighter, a decentralized perpetuals exchange, has introduced a mandatory staking requirement for its native LIT token to access the Lighter Liquidity Pool (LLP) according to reports. The staking model requires users to stake 1 LIT to unlock up to 10 USDC for deposit as detailed. Stakers who hold at least 100 LIT are exempt from withdrawal and transfer fees and can earn yield, although the annual percentage rate (APR) has not yet been disclosed according to data. This model aims to align the interests of token holders and liquidity providers, enhance the pool's risk-adjusted returns, and promote long-term engagement within the ecosystem as reported. The staking requirement applies immediately to new participants, while existing depositors have until January 28 to adjust their positions without staking according to analysis. Fee incentives and the 1:10 staking ratio are designed to encourage users to lock up their LIT tokens, increasing liquidity and market depth on the platform as reported. This initiative is part of Lighter's broader strategy to democratize on-chain hedge funds and promote liquidity provision by creating a mutually beneficial ecosystem according to analysis. The grace period for existing users allows them to adjust strategies and understand the benefits of staking before it becomes mandatory as detailed. Lighter has announced a new LIT staking feature that requires users to stake its native token to access the Lighter Liquidity Pool according to reports. This move indicates a structural shift in the token's utility and the introduction of staking incentives to align the interests of token holders and liquidity providers as reported. While the announcement does not provide detailed mechanics of the staking ratio or rewards, it signals a strategic initiative to boost liquidity, enhance risk-adjusted returns, and encourage long-term participation in the ecosystem according to analysis. The mandatory staking mechanism aims to create a more sustainable and attractive platform for on-chain trading and liquidity provision as reported. Lighter has introduced mandatory staking of its native LIT token to access its liquidity pool according to data. This change is intended to align the interests of token holders and liquidity providers, promoting long-term participation and enhancing liquidity on the platform as reported. The staking model is part of Lighter's broader strategy to improve on-chain trading and liquidity provision by creating a more sustainable and attractive ecosystem for users according to analysis. Hyperliquid's open interest has surged to $9.645 billion, making it a leading Perp DEX platform as reported. This growth highlights the rising adoption of decentralized trading platforms, which offer advantages over traditional finance according to analysis. Hyperliquid is positioned at the forefront of Perp DEX platforms, with its trading volume also leading at approximately $8.82 billion over the past 24 hours as reported. The platform's total value locked (TVL) stands at $4.36 billion according to data. Other notable Perp DEX platforms include Aster, with a 24-hour trading volume of $6.47 billion and open interest of $2.79 billion, and Lighter, with $4.75 billion in trading volume and $1.5 billion in open interest as reported. EdgeX reported a trading volume of $3.87 billion and open interest of $1.21 billion, while Variational and Extended recorded $1.89 billion and $1.87 billion in trading volumes, respectively according to data. Perpetual decentralized exchanges (DEXs) are blockchain-based venues for trading perpetual futures contracts, allowing traders to bet on the underlying asset's price with leverage and without an expiry date as reported. Crypto research firm Delphi Digital said in its outlook for 2026 that perp DEXs are poised to continue taking market share from traditional finance products according to analysis. Delphi Digital argued that decentralized infrastructure is structurally more efficient than legacy systems, which it described as fragmented and expensive to operate as reported. “Now Hyperliquid is building native lending. Perp DEXs could become brokerage, exchange, custodian, bank, and clearinghouse all at once,” wrote Delphi Digital in a Tuesday X post according to analysis. Perpetual decentralized exchanges are moving from the edges of crypto trading toward the center of the market as reported. New data and commentary from Delphi Digital suggest these platforms could evolve into full-service financial venues that challenge the roles traditionally held by banks according to analysis. Perp DEXs allow users to trade perpetual futures contracts with leverage and no expiry date, a product that has historically been dominated by centralized exchanges and traditional derivatives desks as reported. Perp DEXs gain ground as DeFi bundles trading, credit, and custody according to data. Delphi Digital’s 2026 outlook noted that this segment of decentralized finance is now positioned to take further market share from legacy financial products, driven by structural efficiencies that are difficult for traditional systems to replicate as reported. The research firm argued that legacy finance remains fragmented and expensive to operate, while decentralized infrastructure can bundle multiple financial functions into a single on-chain stack according to analysis. Delphi Digital pointed to Hyperliquid’s move toward native lending as a key signal of where the sector is heading as reported. Competing platforms such as Aster, Lighter, and Paradex are now racing to develop similar capabilities according to analysis. This convergence reflects a broader trend in crypto, where trading venues are expanding beyond execution into lending, custody, and capital management as reported.

What Is Driving the LIT Price Decline?

The LIT price has been under downward pressure due to a combination of factors. Post-launch selling, profit-taking, and broader market volatility have contributed to the decline in LIT’s price according to reports. Lighter’s LIT token dropped nearly 15% in 24 hours following the launch of its staking program as reported. The decline has raised concerns about the platform’s long-term sustainability and competitive edge according to analysis. Trading volume dropped from over $10 billion to $2-4 billion, and key metrics like new users and total value locked (TVL) have declined as reported. HyperliquidX is monetizing its trading volume at a rate 10 times higher than Lighter, emphasizing the need for Lighter to innovate beyond fee undercutting according to analysis. Critics argue that key metrics like new users and total value locked (TVL) have declined, indicating a lack of long-term viability according to data. Lighter has expanded its offerings, including tokenized stocks and multi-signature wallet support, to strengthen its long-term foundation as reported. Despite these efforts, the platform must move beyond trading revenue to secure market share according to analysis. Lighter’s LIT token slid sharply after breaking below a key support level of $2.30, extending its post-launch sell-off and reinforcing bearish pressure as reported. At the time of reporting, LIT traded at $2.07, down 20% in 24 hours and 31% in a week according to data. Spot trading volume declined 64% to $15 million, reflecting reduced demand as reported. However, derivatives activity remained active, with perpetual trading volume jumping nearly 118% to $21 million and open interest increasing by 47% according to data. These figures indicate most positioning is focused on short-term momentum rather than long-term exposure according to analysis. Despite a temporary price rebound fueled by whale activity and a treasury buyback program, the momentum faded as early holders sold as reported.

How Is Lighter Addressing the Challenges?

Lighter is addressing the challenges through a combination of strategic initiatives and product enhancements. The introduction of mandatory staking for access to the Lighter Liquidity Pool is a key component of this strategy as reported. The staking model requires users to stake 1 LIT to unlock up to 10 USDC for deposit according to data. Stakers who hold at least 100 LIT are exempt from withdrawal and transfer fees and can earn yield, although the annual percentage rate (APR) has not yet been disclosed as reported. This model aims to align the interests of token holders and liquidity providers, enhance the pool's risk-adjusted returns, and promote long-term engagement within the ecosystem according to analysis. The staking requirement applies immediately to new participants, while existing depositors have until January 28 to adjust their positions without staking as reported. Fee incentives and the 1:10 staking ratio are designed to encourage users to lock up their LIT tokens, increasing liquidity and market depth on the platform according to data. This initiative is part of Lighter's broader strategy to democratize on-chain hedge funds and promote liquidity provision by creating a mutually beneficial ecosystem as reported. The grace period for existing users allows them to adjust strategies and understand the benefits of staking before it becomes mandatory according to analysis. Lighter has announced a new LIT staking feature that requires users to stake its native token to access the Lighter Liquidity Pool as reported. This move indicates a structural shift in the token's utility and the introduction of staking incentives to align the interests of token holders and liquidity providers according to analysis. While the announcement does not provide detailed mechanics of the staking ratio or rewards, it signals a strategic initiative to boost liquidity, enhance risk-adjusted returns, and encourage long-term participation in the ecosystem as reported. The mandatory staking mechanism aims to create a more sustainable and attractive platform for on-chain trading and liquidity provision according to data. Lighter has introduced mandatory staking of its native LIT token to access its liquidity pool according to reports. This change is intended to align the interests of token holders and liquidity providers, promoting long-term participation and enhancing liquidity on the platform as reported. The staking model is part of Lighter's broader strategy to improve on-chain trading and liquidity provision by creating a more sustainable and attractive ecosystem for users according to analysis.

What Is the Future Outlook for Perp DEXs?

Perpetual decentralized exchanges (DEXs) are gaining traction as traders shift to blockchain-based platforms that offer lower costs and fewer intermediaries than traditional centralized venues as reported. Delphi Digital predicts that perp DEXs will continue taking market share from traditional finance products due to their structural efficiency according to analysis. Perp DEXs have already taken a significant share of revenue from centralized exchanges, as their market share rose from 2.1% in January 2023 to a new all-time high of 11.7% in November 2025 as reported. The growing adoption of decentralized trading platforms may bolster the leading DEX token, Hyperliquid (HYPE), to over $200 in the next 10 years, according to a December research note from Cantor Fitzgerald according to analysis. Perpetual decentralized exchanges are moving from the edges of crypto trading toward the center of the market as reported. New data and commentary from Delphi Digital suggest these platforms could evolve into full-service financial venues that challenge the roles traditionally held by banks according to analysis. Perp DEXs allow users to trade perpetual futures contracts with leverage and no expiry date, a product that has historically been dominated by centralized exchanges and traditional derivatives desks as reported. Perp DEXs gain ground as DeFi bundles trading, credit, and custody according to data. Delphi Digital’s 2026 outlook noted that this segment of decentralized finance is now positioned to take further market share from legacy financial products, driven by structural efficiencies that are difficult for traditional systems to replicate as reported. The research firm argued that legacy finance remains fragmented and expensive to operate, while decentralized infrastructure can bundle multiple financial functions into a single on-chain stack according to analysis. Delphi Digital pointed to Hyperliquid’s move toward native lending as a key signal of where the sector is heading as reported. Competing platforms such as Aster, Lighter, and Paradex are now racing to develop similar capabilities according to analysis. This convergence reflects a broader trend in crypto, where trading venues are expanding beyond execution into lending, custody, and capital management as reported.

Hyperliquid's open interest has surged to $9.645 billion, making it a leading Perp DEX platform as reported. This growth highlights the rising adoption of decentralized trading platforms, which offer advantages over traditional finance according to analysis. Hyperliquid is positioned at the forefront of Perp DEX platforms, with its trading volume also leading at approximately $8.82 billion over the past 24 hours as reported. The platform's total value locked (TVL) stands at $4.36 billion according to data. Other notable Perp DEX platforms include Aster, with a 24-hour trading volume of $6.47 billion and open interest of $2.79 billion, and Lighter, with $4.75 billion in trading volume and $1.5 billion in open interest as reported. EdgeX reported a trading volume of $3.87 billion and open interest of $1.21 billion, while Variational and Extended recorded $1.89 billion and $1.87 billion in trading volumes, respectively according to data. Perpetual decentralized exchanges (DEXs) are blockchain-based venues for trading perpetual futures contracts, allowing traders to bet on the underlying asset's price with leverage and without an expiry date as reported. Crypto research firm Delphi Digital said in its outlook for 2026 that perp DEXs are poised to continue taking market share from traditional finance products according to analysis. Delphi Digital argued that decentralized infrastructure is structurally more efficient than legacy systems, which it described as fragmented and expensive to operate as reported. “Now Hyperliquid is building native lending. Perp DEXs could become brokerage, exchange, custodian, bank, and clearinghouse all at once,” wrote Delphi Digital in a Tuesday X post according to analysis.