Lighter [LIT] has demonstrated remarkable resilience with an 11% gain at press time, recovering from a pullback that saw both whales and retail investors selling their positions. According to reports from AMBCrypto, this bounce follows a decline triggered by the Securities and Exchange Commission (SEC) holding back on approving tokenized stock trading. Despite ongoing regulatory uncertainties, LIT has regained market interest with on-chain activity returning in full, as evidenced by surging user interest and the token now being on the verge of making a new local high.
The significant growth in LIT has been accompanied by a surge in on-chain usage metrics. Protocol fees generated from usage reached approximately $152,000 as of May 23rd, according to data from DefiLlama, marking the highest level recorded since April 17th. Total Value Locked (TVL) has reached approximately $149 million, with $15.53 million added to TVL from May 1st, demonstrating sustained user commitment to the platform. As reported by AMBCrypto, this gradual rise in TVL signals that users are committing more assets on-chain for yield, reflecting expectations that LIT will perform well in the near term.
Perpetual trading activity has emerged as a key driver behind LIT's recent performance, with Binance leading the charge. According to CoinGlass data, Open Interest surged by approximately $29.9 million to reach $249 million in the past day, reflecting a significant increase in leveraged positions on LIT. The Funding Rate has held positive throughout, confirming that fresh capital has been positioning on the long side. Binance recorded $69.82 million in LIT trading volume, making it the largest venue driving the current rally among both centralized and decentralized exchanges.
Structural chart analysis indicates potential for further upside from LIT's current position. The Balance of Power indicator continues to form green bars, signaling that buying power remains active in the market and that the asset retains momentum to reach its nearest target. As reported by AMBCrypto, if demand holds at current levels, LIT could extend its move toward a local high of approximately $1.47. Beyond this level, two additional key levels sit at $1.74 and $2.03, both representing areas where significant buy orders are likely to be placed. A sustained surge through the $1.47 level could generate additional momentum toward these higher targets.
