New coin's 9-day market cap is 777 million, how does LIT support it?

LIT (Lighter) has reached a market capitalization of $777 million just 9 days after launch, ranking 74th in the cryptocurrency market cap. According to the latest market data, LIT is currently priced at $3.11, up 2.30% in the past 24 hours, with a 7-day increase of 25.23%. Such performance is uncommon among new tokens, especially considering it has overcome airdrop selling pressure and short-term opposition. The behind-the-scenes support for this performance is not hype but solid fundamental factors.

Buyback Mechanism Becomes Core Fundamental Support

Lighter officially launched its protocol fee buyback mechanism on January 6, which is a key factor driving the recent LIT price. On-chain data shows that Lighter has accumulated and holds approximately 180,000 LIT tokens, worth about $540,000 at the current price.

The core logic of this mechanism is straightforward: all fees generated from DEX trading are transparently disclosed on-chain and flexibly allocated based on market conditions between growth investments and LIT buybacks. Compared to traditional dividend models, this structure opts for direct buybacks, continuously reducing circulating supply and directly linking the protocol’s actual usage to token demand.

Based on market expectations and current revenue levels, Lighter may buy back up to 30 million LIT in the future, accounting for about 3% of the total supply. This means the buyback mechanism is not just a short-term positive but a long-term support for the token’s value. This was immediately reflected in the price after confirmation on January 6 — LIT surged 16% in a single day.

Institutional Funds Continue to Enter, Forming a Support Base

In addition to the buyback mechanism, institutional-level capital inflows are also strengthening market confidence. On-chain monitoring data shows that over the past week, several large addresses have continuously deposited funds into Lighter and purchased LIT.

Specific Entry Details

A whale address established only 7 days ago deposited a total of 4 million USDC over the past week, buying 1.285 million LIT at $2.96 each, totaling about $3.8 million. Another whale address sold 52.1 WBTC and deposited 3.36 million USDC into Lighter, purchasing 1.119 million LIT at $3 each. Newly created addresses also deposited $2.9 million USDC to buy 990,000 LIT at $2.92. The continuous inflow of these structured funds indicates that institutional demand for Lighter’s ecosystem remains stable.

These entry data are interesting — all occurred during periods when LIT was relatively low priced ($2.92–$3), indicating institutional investors have confidence in the project’s long-term prospects rather than chasing high prices.

Platform Function Expansion Signals Growth

Lighter recently launched a 24-hour weekday stock market trading feature and plans to transition soon to 24/7 around-the-clock trading. While this feature expansion seems simple, it actually sends important signals:

• Broadening user trading windows, increasing platform liquidity and usage frequency
• Attracting professional traders and institutional users
• Creating conditions for revenue growth from platform fees
• Reinforcing the sustainability of the buyback mechanism

The improvement of platform features indicates gradual ecosystem maturity, which in turn creates positive feedback for the buyback mechanism.

Bulls’ Strength in Facing Bearish Opposition Is Growing

There are indeed short-selling forces in the market. According to derivatives data, the “Shanzhai Short Army” has accumulated over $9 million in LIT short positions, making it the largest short on Hyperliquid platform, with the latest size reaching $14.1 million.

However, it’s noteworthy that in this standoff, the bulls’ capacity to absorb pressure is increasing. Early airdrop recipients’ behaviors illustrate this well — among the top 50 airdrop addresses, although 12 have reduced their holdings and 5 have fully sold out, 5 others have increased their positions. This divergence indicates that market sentiment about LIT’s prospects is polarized, but confidence among holders is growing.

Summary

LIT reaching a $777 million market cap just 9 days after launch is not due to hype but supported by clear fundamentals: the protocol fee buyback mechanism directly linked to real usage, continuous institutional inflows at low prices, and gradually improving platform features. These factors together form the foundation for the price increase.

Of course, as a new token, LIT still carries uncertainties. Key points to watch are whether the buyback mechanism can sustain real income, the progress of platform feature expansion, and the continuity of institutional capital inflows. If these fundamental factors can be maintained, the current rally may just be the beginning.