LIT Token Tanks Just Weeks After Airdrop: What’s Going On?

Key Notes

• LIT is down 36.7% in seven days and trades at $1.91 at press time.
• The drop follows one of the largest airdrops in history.
• On-chain data shows airdrop recipients sold 15.5M LIT in a week.

Lighter’s native token, LIT, is under heavy selling pressure just two weeks after launch.

The token dropped 14.72% in the past 24 hours and is down 36.7% over the last seven days. At press time, it trades at $1.91.

The selloff follows the airdrop phase and comes regardless of the strong trading activity on the Ethereum Layer 2 exchange, Lighter.

Airdrop Supply Hits Thin Liquidity

LIT debuted in late December after Lighter distributed a large portion of the supply to early users.

Half of the total token supply was allocated to the ecosystem, with 25% of the fully diluted supply entering circulation immediately through the airdrop.

On-chain data shows the recent sell pressure is coming mainly from airdrop recipients. Over the past week, wallets tied to the airdrop sold around 15.5 million LIT.

Only about 5.8 million tokens were absorbed by buyers. The share of users still holding their airdrop fell from 56% to 49.5% in seven days.

Entities often blamed for dumps, like Jump Crypto, have not been major sellers, according to airdrop advisor Sipa.

Known market maker wallets added roughly 730,000 LIT. Liquidity pool wallets sold about 680,000 tokens in the past week, a small share of total volume.

Meanwhile, on-chain tracking shows one whale was partially liquidated on a 1x long, realizing a loss of about $509,000.

Another large trader holding a 3x long is sitting on an unrealized loss of roughly $2.84 million, with further risk if price moves toward $1.49.

Mandatory Staking Changes the Setup

Lighter recently introduced mandatory staking for access to its liquidity pool. Users of the perpetuals DEX must now stake LIT at a 1:10 ratio to deploy USDC into the pool.

Existing participants have until January 28 to comply. Staking 100 LIT also removes withdrawal and transfer fees.

The change aims to tie token utility directly to platform use, but it arrived while a large airdrop supply was still looking for exits.

Until staking demand absorbs circulating tokens, volatility is likely to remain high, and prices might fluctuate.

Traders Flock to Bitcoin Hyper as Presale Hits $30 Million

While LIT continues to slide, trader attention is shifting toward a newer entrant, Bitcoin Hyper (HYPER), which has already raised $30.6 million in its presale. The project takes aim at some of Bitcoin’s

BTC
$96 692



24h volatility:
1.7%


Market cap:
$1.94 T



Vol. 24h:
$67.90 B

most persistent limitations, including slow transactions, high fees, and the lack of native smart contract functionality, while still anchoring itself to Bitcoin’s security.

Bitcoin Hyper is developing a Layer 2 network that runs transactions through an optimized virtual machine before settling them on Bitcoin’s base chain.

This approach is designed to deliver faster execution and lower costs without sacrificing the trust and security of the Bitcoin network.

HYPER token highlights

• Current Price: $0.013585
• Staking Rewards: Up to 38% APY for early participants
• Funds Raised: $30.6 million

With strong presale momentum and a clear focus on improving how Bitcoin can be used, Bitcoin Hyper is drawing interest from traders looking for exposure beyond established tokens.

If you are interested in joining the presale, check out our step-by-step guide on how to buy Bitcoin Hyper and get started.

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