Lighter (LIT) has surged by 18% over the past 24 hours, increasing its market capitalization to $1.20 billion. The rally followed a seven-day correction and was supported by whale accumulation, network expansion, and a technical breakthrough. However, the decline in open interest raises questions about whether there is truly new demand for LIT or if short-term players were forced to close their positions.
Analysts, including Michael van de Poppe, have highlighted LIT among selective altcoins, despite doubts about whether an altcoin season will ever repeat. This list also includes Hyperliquid (HYPE), Zcash (ZEC), Venice Token (VVV), and Near Protocol (NEAR). Van de Poppe noted that the current altcoin season is driven by low liquidity. He stated, "As long as there isn’t significant liquidity in the markets, we will see selective rallies. For more liquidity to come in, Bitcoin needs to move higher." The integration of the DEX into the Circle chain, Arc, could help increase liquidity and thus support LIT's growth.
Amidst this, both whale and retail investors have begun actively purchasing the token. One wallet withdrew 208.6k LIT at an average price of $4.27 from Bybit and OKX, having previously withdrawn 770k tokens that were staked, thereby increasing its total position to 979k tokens worth $4.24 million. LIT broke through the $4.38 level, confirming a bullish wave, with its next target being the previous all-time high of $5.30. Data showing a rise in Chaikin Money Flow (CMF) to 0.18 also indicates increased buying pressure. Quality support from new investments could help LIT retest the $5.30 mark.
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