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

Lighter initiated a treasury buyback program, using 50% of decentralized exchange (DEX) fees to repurchase LIT tokens, aiming to reduce the circulating supply by up to 3% according to reports.

• Whale activity, including a $4.86 million WBTC conversion to purchase 1.119 million LIT tokens, has reinforced investor sentiment and demonstrated institutional interest as data shows.

• The buyback program has driven a 13–37% price increase in LIT, with the token trading at $3.04–$3.11, and the treasury repurchasing over 180,000 LIT tokens valued at around $550,000 according to reports.

Lighter launched a treasury buyback program in January 2026, channeling 50% of DEX fees into repurchasing LIT tokens with the goal of reducing the circulating supply by up to 3% according to reports. The program is intended to create sustained buying pressure and align token value with protocol growth. As of early January 2026, the treasury repurchased over 180,000 LIT tokens at a cost of around $550,000 according to reports.

Whale activity has reinforced the effectiveness of the program. For instance, a $4.86 million WBTC conversion was used to purchase 1.119 million LIT tokens according to reports. Institutional investors also showed strong interest, with one wallet holding 13.2 million LIT tokens valued at nearly $40 million according to reports. These actions indicate growing institutional confidence in the token’s long-term potential.

Despite the positive developments, the program faces potential risks. Whale activity has driven a 13–37% price increase for LIT, but volatility could arise if large whale holdings are sold according to reports. Additionally, declining protocol fees could limit the program’s effectiveness if revenue is insufficient to fund ongoing repurchases according to reports.

What is the impact of Lighter’s treasury buyback program on LIT’s price and market confidence?

Lighter’s buyback program has directly contributed to a 13–37% price increase in LIT according to reports. The program’s transparency, including on-chain tracking of treasury activity, has bolstered investor confidence as research shows. Whale activity, such as a $4.86 million WBTC-to-LIT conversion, has further reinforced the token’s bullish trajectory according to reports.

The treasury’s repurchase of over 180,000 LIT tokens at a cost of around $550,000 has created sustained buying pressure according to reports. Institutional and high-net-worth investors have demonstrated long-term belief in the token’s potential, with one wallet holding approximately 13.2 million tokens valued at nearly $40 million according to reports. These factors have contributed to renewed trading volume and a more bullish market outlook.

What risks or limitations exist for the Lighter buyback program and LIT’s price movement?

Analysts have noted that while whale activity and buybacks have driven a 13–37% price increase for LIT, volatility could arise if large whale holdings are sold according to reports. Whale activity includes both bullish and bearish signals, such as a 5x leveraged short position and increased on-chain accumulation near key support levels, indicating uncertainty in price direction according to reports.

The success of the buyback program also depends on maintaining high protocol fees according to reports. Declining fees could limit the program’s effectiveness if revenue is insufficient to fund ongoing repurchases. Additionally, traders are shifting focus to platforms with airdrop incentives, introducing further volatility according to reports.

How does whale activity influence LIT’s price and investor sentiment?

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 reports. Whale actions have absorbed selling pressure and encouraged retail investors to enter the market according to reports.

The LIT Assistance Fund also repurchased 165,790 LIT tokens at an average price of $3.05 according to reports. These transparent on-chain purchases were accompanied by a nearly 89% surge in 24-hour trading volume to $36 million. Whale activity and technical indicators suggest sustained bullish momentum above $3.00 according to reports.

LIT has experienced a 13–37% price increase, with the token trading at $3.04–$3.11 according to reports. On-chain transparency of treasury activity has reinforced market trust, and whale accumulation indicates strong near-term market confidence according to reports.