LIT Token Rebounds 37% as Lighter Launches Buyback Program

• Lighter’s LIT token has rebounded 37% from its January 1 all-time low of $2.33, following the initiation of a buyback program.
• The protocol uses exchange revenues to repurchase LIT tokens on the open market, with over 181,000 tokens worth $550,000 already acquired.
• Whale activity, including a $4 million USDC deposit to purchase 1.28 million LIT tokens, indicates strong investor confidence in the token’s potential.

Lighter’s LIT token has rebounded 37% from its January 1 all-time low of $2.33, driven by a buyback program funded by protocol fees. This strategy is part of a broader effort to reinvest in the token ecosystem, reduce supply, and support the token’s price. The LIT token serves as a governance and staking mechanism, with early users receiving 25% of the total supply through an airdrop.

Whale activity, including significant purchases from large investors like one believed to be Tron founder Justin Sun, has further contributed to the token’s recovery. These large-scale purchases suggest strong market confidence in LIT’s future value. Additionally, a whale address deposited $4 million in USDC into Lighter’s decentralized perpetual futures exchange to increase its LIT holdings, signaling robust conviction in the digital asset’s potential.

The buyback strategy, where the protocol uses fees to repurchase tokens, is similar to strategies used by other platforms. This approach mirrors similar programs by competing platforms. The current LIT price is $2.95, down 0.8% in the past 24 hours but up 11.0% in the last seven days.

Why Is Investor Confidence Growing in LIT?

Investor confidence in LIT is growing due to the protocol’s buyback program and favorable crypto market conditions. The Lighter treasury account holds over 181,000 LIT tokens worth about $550,000, used to repurchase tokens on the open market. This strategy aims to reduce supply and increase value for investors, supported by whale activity and broader crypto market trends.

The LIT token serves as a governance token, allowing holders to propose and vote on protocol changes. It can also be staked to grant access to premium exchange features. The buyback strategy, where the protocol uses fees to repurchase tokens, is similar to strategies used by other platforms. This approach has reinforced investor confidence in LIT’s long-term value.

What Does the Buyback Program Mean for LIT’s Future Value?

The buyback program is funded by 50% of the protocol’s treasury and aims to increase token value by reducing supply. Whale purchases and institutional interest further reinforce the token’s appeal. The LIT token also serves as governance and staking mechanism, with a $68 million funding round led by Founders Fund and Ribbit Capital providing additional support for growth and buybacks.

Lighter’s LIT token surged 13.9% in the past 24 hours, reaching approximately $3.04, following the confirmation of onchain buyback activity. The protocol’s treasury account, referred to as Account #0, held 180,588 LIT tokens valued at around $548,987 by Monday night. Lighter confirmed that the treasury would reflect both protocol revenue and token buyback activity, tracked publicly onchain.

The platform uses trading fees and future revenue to fund growth and buybacks, with 50% of the total token supply allocated to the ecosystem. This strategy reinforces long-term alignment with token holders and has attracted increased attention in the competitive perpetual futures market. Lighter’s innovative tokenomics and ZK infrastructure have enabled it to capture 27.7% market share in Q4 2025, positioning it as a leading decentralized exchange.

What Are the Risks for LIT Investors?

Despite the positive developments, the LIT token has experienced significant price volatility, with a 30% decline post-airdrop. Justin Sun’s linked wallets acquired $33 million worth of LIT tokens, representing over 5% of the token’s circulating supply. This acquisition is connected to Lighter's liquidity program, not airdrop farming. The purchase suggests strategic interest in LIT but also highlights the token’s potential for growth despite current market challenges.