Lighter’s LIT token has dropped more than 36% in seven days as airdrop recipients rushed to exit into thin liquidity
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.
The remaining 25% of the ecosystem allocation will be used for future points seasons and, to a lesser degree, partnerships and growth initiatives. The team and investors all have a 1-year unlock and 3-year linear vesting after. The breakdown is 26% team, 24% investor.
— Lighter (@Lighter_xyz) December 30, 2025
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.
I've seen some misinformation circulating about $LIT PA, revenue and various entities from notable accounts lately, so I decided to dig deeper
Some people are blaming Jump and other MMs for selling their tokens and creating sell pressure, but this is actually incorrect
> Jump… https://t.co/ONEh2B27rY pic.twitter.com/nTwpit4L5n
— Sipa (@SipaAirdrop) January 14, 2026
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.
As the $LIT continues to go down, A whale got partially liquidated on his $LIT (1x) long position loosing $509K.
The whale still holds the position with the next liquidation price of $1.49https://t.co/9xe6PVvM5s pic.twitter.com/ewcSs964JE
— Onchain Lens (@OnchainLens) January 15, 2026
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.
We are rolling out staking of LIT on Lighter! Here we will describe the initial utility from staking and how it will affect the Lighter ecosystem. pic.twitter.com/5NC8b4utuv
— Lighter (@Lighter_xyz) January 14, 2026
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 $96 678 24h volatility: 0.9% Market cap: $1.93 T Vol. 24h: $62.63 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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