Lighter (LIT) made one of the strongest moves in the market, climbing 13% to its daily high.
Several factors supported the rally. Lighter has generated almost $1 million in protocol revenue over the past 15 days.
Meanwhile, spot buyers positioned themselves for further gains as LIT outperformed the broader market.
Why do Spot Buyers support LIT?
While the broader market remained muted, LIT attracted aggressive spot buying.
CoinGlass data recorded $13.53 million in weekly Spot Netflow. Total cash inflows reached approximately $54.60 million.
A positive net flow meant that active buying volume exceeded active selling volume. This did not represent withdrawals to private wallets.
Over the past 24 hours, Spot Netflow reached $1.24 million and continued to favor buyers. Sustained demand could help LIT protect its gains. However, buyers need to maintain this pressure as the rally matures.
Who leads the LIT gathering?
Retail traders appear to be behind much of LIT’s latest rise. The whale-retail delta remained negative, indicating stronger retail participation than whale activity.
Despite this, the indicator has increased over the past day. This change suggests that whale participation also increased during the rally.
Perpetual markets attracted additional capital as open interest reached approximately $379.79 million. Traders added $17.88 million in positions over 24 hours, increasing LIT’s leveraged exposure.
Rising prices, open interest and funding rates suggest that bullish positioning has supported the rally. However, higher leverage could also increase volatility if momentum weakens.
Can token burning support LIT?
Lighter’s buy-and-burn structure provided another level of support.
On July 10, the protocol burned around 15.6 million LIT, worth around $42 million.
Lighter had repurchased these tokens using protocol revenue accrued during the second quarter of 2026. The burn permanently removed 6.3% of the circulating supply. This reduction strengthened LIT’s scarcity argument while linking protocol revenue to token supply.
Spot demand, rising open interest and tightening supply could support further gains. However, retail dynamics could prove fragile without sustained participation from whales.
Final Summary
- Briquet’s whale participation increased, but retail traders continued to carry the bulk of their conviction.
- LIT’s rebound now hinges on whether speculative demand can turn into lasting market support. The next test could reveal whether scarcity or leverage carries more weight.
