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

Lighter's treasury buyback program, using 50% of DEX fees to repurchase LIT tokens, aims to reduce the circulating supply by up to 3% and align token value with protocol growth.

• Whale activity, including a $4.86M WBTC conversion and a $4M USDC deposit, has reinforced investor sentiment and demonstrated institutional interest.

• Institutional and high-net-worth investors have shown strong conviction in the token's future value, with one wallet holding approximately 13.2M LIT tokens.

Lighter's LIT token has experienced significant price appreciation since the launch of its treasury buyback program in early January 2026. The initiative uses 50% of decentralized exchange fees to repurchase LIT tokens, aiming to reduce the circulating supply by up to 3%. The treasury has already repurchased over 180,733 LIT tokens at a cost of $564,609.

The buyback strategy is designed to channel DEX fees into on-chain repurchases, reducing the circulating supply and aligning token demand with protocol usage. Whale activity has also played a role in reinforcing LIT's price momentum. For example, a whale's 1x long in LIT slid into a $1.8 million floating loss, while Lighter's daily revenue printed just $8,450.

Institutional and high-net-worth investors have shown strong conviction in the token's future value. One wallet holds approximately 13.2M LIT tokens valued at nearly $40M. The buyback program is transparent, with on-chain data tracking treasury wallet activity.

What is the impact of Lighter's buyback program on the LIT token's price?

The buyback program has had a positive impact on the LIT token's price. The treasury has already repurchased over 180,733 LIT tokens at a cost of $564,609. Whale activity, including a $4.86M WBTC conversion and a $4M USDC deposit, has reinforced investor sentiment. Institutional and high-net-worth investors have shown strong conviction in the token's future value.

The program aims to reduce the circulating supply by up to 3%, aligning token value with protocol growth. This strategy has driven a price surge of 13–37% in LIT as of early January 2026. The buyback program is transparent, with on-chain data tracking treasury wallet activity.

What role has whale activity played in reinforcing LIT's price momentum?

Whale activity has played a significant role in reinforcing LIT's price momentum. For example, a whale's 1x long in LIT slid into a $1.8 million floating loss, while Lighter's daily revenue printed just $8,450.

Whale activity, including a $4.86M WBTC conversion and a $4M USDC deposit, has reinforced investor sentiment and demonstrated institutional interest. Institutional and high-net-worth investors have shown strong conviction in the token's future value. The buyback program is transparent, with on-chain data tracking treasury wallet activity.

What is the long-term vision for LIT as part of Lighter's strategy?

The long-term vision for LIT is to align token value with protocol growth through a transparent buyback program. The program uses 50% of decentralized exchange fees to repurchase LIT tokens, aiming to reduce the circulating supply by up to 3%.

The buyback strategy is designed to channel DEX fees into on-chain repurchases, reducing the circulating supply and aligning token demand with protocol usage. Institutional and high-net-worth investors have shown strong conviction in the token's future value. The buyback program is transparent, with on-chain data tracking treasury wallet activity.

Lighter confirmed that the treasury account would track protocol revenue and buyback activity, reinforcing transparency and long-term alignment. The initiative is part of a broader effort to strengthen the platform's longer-term foundation, including the expansion of product offerings.