Lighter's LIT token has experienced a dramatic surge in whale activity, with 86 transactions above $100,000 recorded in the past 6 months, according to on-chain analytics firm Santiment. This represents the largest whale transaction spike in six months, coinciding with LIT's sharp rally that has seen the token climb 37.9% over the past week and jump more than 20% on Monday to $2.6, its highest level since January. The whale activity surge tracks renewed attention on the token's perp DEX narrative, tokenomics updates, buyback and burn mechanics, staking yield, and recent partnership developments. As reported by Santiment, the activity spike reflects renewed interest in the protocol's comprehensive tokenomics overhaul and enhanced staking model.
Lighter has implemented a comprehensive buyback program that now utilizes 100% of protocol revenue for token repurchases, significantly expanding from the previous strategy of repurchasing approximately 15.5 million LIT, or roughly 6.3% of the circulating supply. The exchange plans to use these repurchased tokens to permanently reduce LIT supply through burns, with the first burn scheduled in the weeks after the second quarter closes. As reported by Lighter, the burns will be executed by sending LIT to a burn address on the Ethereum mainnet, with the exchange noting this approach is economically equivalent for LIT holders while allowing efficient treasury operations. The protocol may burn undistributed LIT rather than the exact repurchased tokens to optimize the burn process.
Lighter has fundamentally shifted its staking rewards structure, moving away from distributing rewards using pre-TGE revenue. Since launching its staking program in January, the exchange distributed approximately 3.72 million LIT using pre-TGE revenue, including roughly 170,000 LIT through its fee credits program. The new model will fund staking rewards using the exchange's remaining ecosystem tokens, which total 250 million LIT. The protocol is targeting a 6% annualized staking yield, with about 125 million LIT currently staked, which would distribute roughly 7.5 million LIT per year. This revamped approach represents a significant shift from the previous model that relied on pre-TGE revenue for staking rewards.
LIT broke decisively above the $2.03 resistance level and traded around $2.6, confirming a continuation of its broader uptrend. The token's ability to reach a seven-month high suggests strong underlying momentum, with the Relative Strength Index (RSI) climbing to 79.7 at press time, showing steady upward momentum within the overbought area. The Open Interest was up by 8.32%, keeping pace with the price gains, while the predominantly negative funding rate has flipped positively as LIT prices climbed past the $2.20-$2.30 local supply zone. The OBV was also trending higher since May, showing steady buying pressure on the altcoin. There is potential for a pullback toward $2, and possibly as deep as $1.75, that swing traders and investors can consider as an ideal buying opportunity, though the current momentum might carry LIT higher without a sizeable pullback.
