Lighter (LIT) regained market interest with an 11% gain at press time, recovering from a pullback that saw both whales and retail investors sell their positions.
The rebound follows a decline triggered by the Securities and Exchange Commission’s (SEC) refusal to approve trading in tokenized stocks, as AMBCrypto recently reported.
On-chain activity has since fully resumed, with user interest growing and LIT now poised to hit a new local high.
LIT Protocol Fees Hit a Five-Week High
The significant growth seen in LIT followed an increase in on-chain usage.
Fee data from DefiLlama shows that fees generated from using the protocol reached approximately $152,000 as of May 23, the highest level recorded since April 17.
An increase of this nature generally reflects real growth in protocol usage, which is driving the increase.
TVL has also seen significant growth, reaching a peak of around $149 million according to the latest data. The gradual increase in TVL indicates that users are committing more assets to the chain to get a return, reflecting the expectation that LIT will achieve good results in the short term.
Since May 1, $15.53 million has been added to the TVL, a solid increase for the protocol if momentum continues to build.
This comes as perpetual trading volume on the platform consistently remained above the $1 billion threshold between May 18 and 23, reflecting sustained trading interest in the asset.
Binance generates $69.82 million in volume
Perpetual trading activity has been another obvious driver of LIT’s recent performance.
According to CoinGlass data, Open Interest (OI) surged from around $29.9 million at the time of writing, reaching $249 million over the past day. This rise in OI reflects a significant increase in the number of leveraged positions opened on LIT, indicating that traders are actively betting on the direction of the asset.
The funding rate remained positive throughout, confirming that the majority of this new capital was positioned on the long side.
Binance traders have been at the forefront of this bullish positioning. The Long/Short ratio on Binance saw a significant increase, reaching 1.8, reflecting a high concentration of buying volume on the platform.
Binance recorded $69.82 million in LIT trading volume, the largest of any centralized or decentralized exchange at the time of writing, confirming it as the main venue behind the current rally.
KEY metric remains green as LIT targets $1.47
Structural chart analysis indicates further upside potential for LIT from its current position.
The Balance of Power indicator continues to form green bars on the chart, signaling that purchasing power remains active in the market and that the asset maintains the momentum needed to reach at least its nearest target.
If demand continues at current levels, LIT could continue its move towards a local high around $1.47.
Beyond this, two additional key levels lie ahead on the chart, at $1.74 and $2.03, both of which represent areas where large buy orders are likely to be placed.
A sustained rise to the $1.47 level could generate additional momentum toward these higher targets, reinforcing LIT’s overall positive outlook in the near term.
Final Summary
- Lighter protocol fees hit five-week high of $152,000 as TVL hits $149 million
- LIT OI increases from $29.9 million to $249 million as Binance generates volume of $69.82 million.
