Lighter imprint rallied sharply on Jan. 6 after the protocol confirmed the originate of its long-anticipated buyback program, pushing prices bigger.
- Lighter rose 16% because the protocol confirmed its token buyback program.
- Space and derivatives scream surged, pointing to recent positioning.
- Price is consolidating above $3.00 after a solid breakout pass.
LIT became as soon as buying and selling at $3.06 at press time, up 16% over the last 24 hours. The pass extended a volatile week that noticed the token replace between $2.33 and $3.37.
Trading quantity jumped to $157.8 million over the last day, marking a bigger than tenfold assemble bigger when put next with the old session. Derivatives data from CoinGlass exhibits a identical shift.
Quantity climbed 87% to $21 million, while originate curiosity rose 58% to $1.81 million. When both metrics rise together, it generally parts to recent positioning entering the market as a replacement of merchants merely closing present bets.
Buyback originate shifts provide myth
The rally comes after Lighter confirmed that protocol prices are now being routed straight into token buybacks. In a Jan. 6 commentary, the employees acknowledged all prices generated by its core DEX product and future companies and products may maybe per chance maybe per chance be seen on-chain and allotted between deliver initiatives and buybacks looking on market cases.
The prices generated and protocol buybacks can also merely additionally be tracked with the treasury story within the block explorer, gaze hyperlink in threadhttps://t.co/b6PubEokro
— Lighter (@Lighter_xyz) January 5, 2026
On-chain data exhibits the treasury at this time holding roughly 180,000 LIT tokens alongside about $1.35 million in USDC, offering on the spot skill for market purchases. In want to paying out prices within the produce of dividends, the mannequin channels all income into buying relieve tokens.
This kind gradually reduces the circulating provide and hyperlinks proper protocol utilization straight to inquire for the token. Mighty of the community conversation has centered on how meaningful the affect may maybe per chance maybe per chance per chance be.
The employ of most modern income figures, some projections conceal the protocol may maybe per chance maybe per chance be ready to repurchase as many as 30 million LIT within the end to future, roughly 3% of the total provide. While the staunch buyback lumber will rely on buying and selling scream, the structure itself has shifted how merchants survey long-time-frame price capture.
Lighter launched LIT on Dec. 30 following a $68 million funding round at a $1.5 billion valuation, backed by Ribbit Capital, Founders Fund, Haun Ventures, and Robinhood Ventures.
The token has a mounted provide of $1 billion, atomize up evenly between ecosystem incentives and employees, and investor allocations. At originate, an airdrop became as soon as veteran to distribute a quarter of the provision, and investor tokens had been locked below a three-yr vesting agenda.
Lighter imprint technical evaluation
From a technical standpoint, LIT remains to be riding a non everlasting uptrend after breaking out of its old consolidation zone within the mid-$2.60s. The sample of bigger highs and bigger lows exhibits that bullish momentum remains on high of things, even supposing the token has stalled rather end to resistance.
The most modern rally carried the price in direction of the upper Bollinger Band at around $3.18, reflecting solid upward momentum. That band is starting up to flatten, indicating that the buying tension is easing and the market may maybe per chance maybe per chance per chance be entering a end in want to persevering with a fleet strategy
A fleet inquire on the momentum indicators tells a identical myth. The relative energy index pushed into overbought territory end to 70, on the replacement hand it didn’t preserve there long and slid relieve into the low 60s. That roughly fall generally reflects some cooling off, no longer a construction flip. The final bullish construction can also merely proceed as long because the RSI is bigger than 50.
Within the end to time-frame, the $3.00 level has emerged as a crucial take a look at for sustaining this upward momentum. A dapper atomize above that set may maybe per chance maybe per chance originate room for a recent leg bigger. Failure to help the $2.95 space would possible result in a deeper retracement in direction of $2.80, where earlier inquire and volatility reinforce sit down.
