Lighter's LIT token has declined by approximately 15% over the past 24 hours. This drop occurred following the announcement of the platform's new staking program.
This program introduction adds new use cases for the token and ecosystem alignment. However, the price drop was primarily driven by sell pressure right after launch and the overall market conditions.
LIT Staking Launch...Essential Information for Lighter Users
As of the current timestamp, Lighter DEX's LIT token is trading at $1.85, having dropped approximately 14.79% over the past 24 hours. This decline has effectively confirmed Lighter's previous 15% projected drop for the LIT token.
This news came shortly after Lighter detailed its staking plan. The network emphasized that LIT holders can now access rewards and additional platform features. Staking LIT unlocks access to Lighter's LLP, the core on-chain financial product.
Under this program, for every 1 LIT staked, users can immediately deposit an equivalent of $10 worth of USDC into the LLP. Existing LLP holders are granted a two-week grace period until January 28. After that, staked LIT must remain in the pool.
According to Lighter, this mechanism was designed to better align the interests of LIT holders and LLP participants while improving risk-adjusted returns.
A similar structure is planned for other public pools. This reflects the exchange's goal of 'democratizing on-chain hedge funds.'
Staking also provides fee incentives. Premium market makers and high-frequency trading (HFT) investors receive discounts in adjusted new fee tiers, while retail trading remains free of charge.
'Staking LIT on Lighter allows you to earn interest, and once the feature is live, the annual percentage rate (APR) will be disclosed.' โ Part of Lighter's official announcement
Lighter plans to disclose detailed information about the premium fee tiers within the next few days. This will allow professional traders to calibrate their algorithms accordingly.
As an additional benefit, users who stake 100 LIT will receive fee-free withdrawals and transfers. Mobile staking support is also planned for the future. Interest will be prioritized for existing premium users, who will receive staking privileges first.
Causes of LIT declineโฆpost-launch selling, FUD, and staking volatility
Despite the potential benefits of staking, the decline in LIT price resulted from a complex combination of multiple market factors. The selling pressure after launch and the token distribution following the public mainnet release in October clearly created downward momentum.
Lighter network continues to bear the burden of FUD related to the alleged private token sale. CEO Vladmir Novakovsky has officially clarified this issue via Discord.
Early investors and airdrop recipients sold some of their tokens, triggering a chain reaction of exits in the market. Trading volume declined after the initial high interest at launch, and the breakdown below technical support levels further encouraged additional selling.
The announcement of staking itself exacerbated the downtrend. The 'buy the rumor, sell the news' mentality, fueled by speculation and news, further intensified natural volatility and profit-taking phases.
Lighter attempted token defense through buybacks under the tokenomics model starting January 5.
However, these efforts so far have been insufficient to offset selling pressure. The exchange remains a major competitor in the perpetual swap market and recorded trading volume close to $5 billion in the past 24 hoursโranking third after Aster ($6.2 billion) and Hyperliquid ($8.8 billion).
Recently, Lighter raised $68 million at a valuation of $1.5 billion in a round co-led by Founders Fund and Ribbit Capital.
As the platform continues to advance the LIT ecosystem, the launch of the staking program represents a key step in integrating token utility and financial product accessibility.
