LIT Surges as Lighter Launches Treasury Buyback Program

Lighter (LIT) launched a treasury buyback program in January 2026 using 50% of DEX fees to reduce the circulating supply by up to 3%.

Whale activity and institutional investments, including a $4.86 million WBTC conversion and a $33 million stake by Justin Sun, reinforced market confidence in the token.

The buyback program has already repurchased 180,000 LIT tokens at a cost of around $550,000, contributing to a 13–37% price surge to $3.04.

Lighter initiated a token buyback program on January 6, 2026, using $1.35 million in USDC to reduce the circulating supply and reinforce token value. The program allocates 50% of protocol fees from its decentralized exchange and future services toward on-chain repurchases of LIT tokens. This initiative aims to stabilize value and align tokenomics with protocol usage and growth according to analysis.

Institutional and whale activity has further reinforced market confidence. A $4.86 million WBTC conversion was used to purchase 1.119 million LIT tokens, while institutional investors hold 13.2 million LIT tokens valued at nearly $40 million. Additionally, Justin Sun acquired 13.25 million LIT tokens for $33 million, signaling long-term belief in the platform according to reports.

The buyback program has already driven a 13–37% price surge, with the token reaching approximately $3.04 in early January 2026. On-chain data shows that the treasury account has repurchased over 180,000 LIT tokens at a cost of around $550,000 according to data.

What Happened?

The buyback program was launched to reduce the circulating supply and enhance token value by reinvesting a portion of protocol fees into on-chain repurchases. This move is part of a broader strategy to align token value with protocol growth and create sustained buying pressure. The program has repurchased over 180,000 LIT tokens, reducing the supply by up to 3% according to analysis.

This initiative is not unique to Lighter, as similar buyback strategies are being adopted across the DeFi space. However, the transparency of the treasury account and the on-chain tracking of repurchase activity distinguish Lighter's approach from others according to reports.

Why It Matters?

The buyback program has reinforced investor confidence, with whale and institutional investments further supporting the token's value. For example, a $4.86 million WBTC deposit was used to acquire 1.119 million LIT tokens, reflecting strong market sentiment according to data.

Moreover, institutional investors holding 13.2 million LIT tokens valued at nearly $40 million demonstrate long-term belief in the token's potential. This activity is seen as a positive signal by analysts and could attract additional investors to the platform according to analysis.

Market Implications?

The buyback program has driven a significant price surge for LIT, with the token reaching approximately $3.04 in early January 2026. This increase in value is attributed to the combination of reduced supply and increased demand from whale and institutional investors according to reports.

Analysts suggest that if the program continues at this pace, it could further enhance LIT's appeal to both retail and institutional investors. This could lead to a sustained increase in token value and greater adoption of the Lighter platform according to analysis.

However, the success of the buyback program depends on continued investor confidence and the effectiveness of the tokenomics strategy. Any changes in market conditions or investor sentiment could impact the program's long-term viability and the token's performance according to reports.