LIT Surges as Lighter Protocol Launches Token Buyback Program

• Lighter’s LIT token has rebounded 37% from its all-time low after the protocol began using exchange revenues to buy back tokens.
• The protocol’s treasury account has accumulated over 181,000 LIT tokens, signaling confidence in the token’s value and transparency in the buyback strategy.
• Institutional and whale activity, including a $4.86M Bitcoin-to-USDC conversion, fueled buying pressure and price momentum above $3.09.

The LIT token was launched on December 30 through an airdrop of 250 million tokens — 25% of the total supply — to the protocol’s early users according to reports. It acts as a governance token, allowing holders to propose and vote on protocol changes and offering access to premium exchange features through staking as noted in documentation.

Following its launch, LIT fell to an all-time low of $2.33 as many airdrop recipients cashed out according to market data. The token has since rebounded 37%, buoyed by excitement surrounding the protocol’s buyback plans and favorable crypto market conditions. Bitcoin’s rally has also contributed to a broader risk-on mood in the crypto market as reported.

What is the structure of Lighter’s buyback program?

The protocol has begun using revenues from its exchange product to purchase LIT tokens on the open market at a rate determined by market conditions according to protocol updates. The treasury account, where protocol fees accumulate and buybacks are conducted, holds more than 181,000 LIT tokens worth about $550,000.

Lighter has stated it will use revenue from trading fees and future products to support growth and buybacks as announced. A portion of the 1 billion total token supply has been set aside to fund ecosystem expansion, while the rest will be managed based on revenue and market conditions according to official statements.

What impact have the buybacks had on LIT’s price and investor sentiment?

On-chain data indicates strong accumulation patterns, and technical indicators show favorable buying pressure according to analysis. The price of LIT has increased 13.9% in the past 24 hours, reaching approximately $3.04 as reported.

The Chaikin Money Flow indicator shows strengthening inflows during the recent rally, supporting the price movement according to technical data. Earlier bearish divergence in early January led to a pullback, but the recent alignment of price and capital flow suggests improved accumulation as market analysis indicates.

Lighter recently secured $68 million in funding at a $1.5 billion valuation. The buyback strategy aims to reduce supply and boost value but faces risks from market volatility and competition from platforms like Hyperliquid as observed.

A newly created wallet deposited 2.89 million USDC into Lighter and used it to purchase 991,458 LIT tokens at $2.92, signaling growing institutional interest according to transaction data. A large transaction involving 52.1 wrapped Bitcoin ($4.86 million) was converted into USDC and used to buy 1.119 million LIT tokens, adding upward pressure to the price as detailed in reports.

LIT is currently trading around $3.09, above key support levels, with a potential target near $3.60 as indicated.

A close above $3.19 could confirm a breakout, while a return of selling pressure may push the price below $2.97, reintroducing risk of correction according to technical analysis.

The token’s price has risen 18.3% in the past 24 hours, approaching $3.11 as market data shows.

The Lighter Assistance Fund also bought 165,790 LIT tokens over a short period, at an average price close to $3.05 according to transaction records.

The buyback program, initiated on January 6, reflects a commitment to the project’s post-launch strategy and has coincided with increased investor inflows and improved risk appetite in the broader crypto market as reported.

The protocol has confirmed through an official post that the treasury account will reflect both protocol revenue and token buyback activity, which can be tracked onchain according to official documentation.

Lighter has begun its buyback program, a key milestone for the project, with a treasury wallet containing approximately 180,733 LIT tokens as stated.

On-chain transparency and technical indicators show accumulation trends, with $3.60 as a potential target despite risks from large holder liquidity according to analysis.

The token’s price has also increased 14% to $3.04 after onchain signs of protocol-led token buybacks as reported.

The treasury held over $548,000 worth of LIT tokens as of Monday night according to data.

The protocol’s treasury account has repurchased over 181,000 tokens according to on-chain data.

The LIT price jumped 13% after Lighter confirmed protocol fees would be used for token buybacks according to market analysis.

On January 6, on-chain data showed Lighter’s treasury using protocol fees to buy back LIT tokens directly from the market as documented.

Community members tracked transactions where the treasury spent over $10,000 in USDC to purchase roughly 180,700 LIT tokens according to transaction records.

The Money Flow Index shows sustained buying pressure, with the indicator not yet reaching the overbought threshold, indicating room for continued upward movement as technical indicators show.

Lighter’s native token, LIT, surged 13.9% in the past 24 hours, reaching approximately $3.04 by Monday evening according to price data.

The price move followed strong speculation and later confirmation that the protocol is engaging in token buybacks as reported.

Onchain data revealed that the platform’s treasury account has accumulated more LIT tokens, which market participants interpreted as part of the buyback activity according to market analysis.

The protocol has previously stated that it would use revenue generated from trading fees and future products to support both growth and buybacks as confirmed.

A portion of the 1 billion total token supply has been set aside to fund ecosystem expansion, while the rest will be managed based on revenue and market conditions according to official statements.