Lighter (LIT) is up approximately 12.52% over the past 24 hours amid a surge in the broader DEX perpetual narrative. The respective tokens in turn experienced a price rise.
The increase comes after SpaceX launched its initial public offering (IPO) as it aims to raise $75 billion in funding.
Generally speaking, IPO trading on perpetual DEXs has seen a parabolic increase on platforms like AsterDEX and Lighter, among others.
Analyze trading volume on the Lighter ecosystem
Following SpaceX’s IPO, notional trading volume on Lighter increased 73.7% week-over-week to $14.84 billion. The previous week, this volume was around $8.54 billion if we evaluate the data for the last 30 days.
Over the past month, notional trading volume stood at $45.7 billion, also up more than 14.5%.
LIT’s token trading volume increased 120% in one month to $1.80 billion. Last week, that volume nearly doubled, from $377 million to approximately $657.7 million.
This increase in commercial activity has led to an increase in the number of holders and revenue from fees. Token holders increased by 32.5%, reaching 4,50,000 at press time.
Additionally, fee revenue increased 34% to $3.80 million. Despite this increase in fees, LIT lags behind Hyperliquide in terms of P/E ratio with 6.5x compared to 13.3x. This means that each HYPE token generates twice as much revenue.
As incomes increase, this creates demand for LIT because it automatically buys up supply in the open market. The protocol dedicates 100% of its revenue to redemptions.
Recently, they purchased around 90,000 LIT tokens, bringing this month’s total buybacks to around 2 million. The treasury now holds over 14 million tokens after purchasing 9.56 million this quarter.
Can LIT price surpass June high?
LIT has also bounced off the tilted support level in place since mid-May. The trendline runs from a low of $0.90 to $1.50.
The LIT/USDT perpetual trading pair on Binance shows a purchase volume of 1.28 million tokens according to CVD. Additionally, buyers are gaining strength with the momentum indicator moving from negative territory above 0.166.
Therefore, with volumes and activity returning to DEXs perp, this positions the altcoin to rebound towards the June high of around $1.80 or more.
However, the altcoin is facing a blockade in the $1.60-1.70 zone, where it has several wicks. These wicks show that there is selling pressure, which pushed the price down to the $1.38 level, aligning with the trendline.
Final summary
- Lighter rose 12% after a 74% rise in notional trading volume following the official launch of SpaceX’s IPO.
- LIT price has bounced off the tilted support level, but now faces resistance at the $1.60 to $1.70 area.
