New coin LIT rises 17.5% in just 7 days since launch, revealing the truth behind the DEX subsidy war heating up

LIT experienced a strong surge one week after its launch, currently priced at 3.174 USDT, breaking the $3 barrier, with a 24-hour increase of 14%. Why has this new coin gained market attention in such a short period? What does this reflect?

Data Support Behind the Strong Performance of the New Coin

Dual Growth in Price and Trading Volume

Since its launch on December 30, 2025, LIT has performed remarkably well, not only with a continuous price increase but also with a noticeable rise in market enthusiasm.

The most direct data is the change in trading volume. The 24-hour trading volume reached $35.19 million, a 68.11% increase from the previous day, indicating that not only is the price rising, but market participation is also rapidly increasing. As of the latest data, LIT’s market cap has reached $785.09 million, ranking 75th in the cryptocurrency market capitalization list.

Liquidity and Supply Structure

LIT has a total supply of 1 billion tokens, with only 250 million in circulation, representing a 25% circulating supply. This supply structure implies that a large number of tokens are yet to be released, which presents potential growth space but also poses risks that need attention.

Genuine Market Participant Reactions

Whale Entry and Positioning

According to on-chain monitoring data, market participants show a clear divergence in attitude toward LIT. On one hand, new addresses spent $2.89 million USDC on January 5 to buy 991,458 LIT at a price of $2.92, indicating active capital deployment. On the other hand, large holders, dubbed the “Shanzhai Air Force,” increased their LIT short positions to $14.10 million, with an average price of $2.70, reflecting differing expectations about the future trend.

The Dual Nature of Market Sentiment

This polarization between bullish and bearish sentiments is quite interesting. What are the bulls optimistic about? Possibly LIT’s scarcity as a new coin and new opportunities within the DEX ecosystem. What are the bears wary of? Likely concerns about sustainability driven by subsidies.

LIT’s Position in the DEX Ecosystem

Subsidy-Driven Characteristics

Market analysis shows that LIT, Hyperliquid (HYPE), and Aster (ASTER) form the current “triumvirate” in the DEX market, each holding about 13%-15% market share, with 24-hour trading volumes around the $3 billion level.

However, their commercial characteristics differ significantly. Hyperliquid has become a blue-chip in the market with relatively full valuation; Aster is positioned at the Binance ecosystem entrance, relying on a stable user base and cash flow; while LIT depends more on subsidies and is still in the experimental stage.

This means that LIT’s short-term gains may be supported by subsidy effects, but whether it can sustain such growth in the long term depends on its ability to convert into genuine trading activity and user stickiness.

Short-Term Trend Observation

From a technical perspective, LIT’s performance over the past week aligns with typical new coin characteristics: rapid rise, surging volume, and high market sentiment. But this also indicates accumulating risks.

Market monitoring data shows that recent traders have set a key resistance level at $2.81. A breakout above this level would confirm an upward trend on the 4-hour chart. Meanwhile, support is around $2.604. Fluctuations within this price range will be key points for subsequent observation.

Summary

LIT’s rise reflects two phenomena: first, the market enthusiasm and capital chasing during the initial phase of a new coin’s launch; second, the routine practice among platforms to boost trading volume through subsidies and incentives amid increasing DEX ecosystem competition. In the short term, LIT’s strong performance may continue, but investors should be aware that this growth is largely subsidy-driven rather than based on fundamentals for long-term appreciation. Future focus should be on whether trading volume can be maintained after subsidy reductions and how circulating supply releases impact the price.