Lighter [LIT] is up about 12.52% in the past 24 hours amid a surge in the broader perpetual DEX narrative. The respective tokens in turn have seen a spike in prices.
The surge comes after SpaceX launched their Initial Public Offering (IPO) as they target raising $75 billion in funding.
Generally, the trading of IPOs on perpetual DEXes has seen a parabolic rise on platforms like AsterDEX and Lighter, among others.
Analyzing trading volume on the Lighter ecosystem
As a result of the SpaceX IPO, the notional trading volume on Lighter is up 73.7% week-over-week, reaching $14.84 billion. The week before, this volume was about $8.54 billion when gauging the data for the last 30 days.
Over the last month, notional trading volume was at $45.7 billion, which was also up more than 14.5%.
The token trading volume of LIT has increased by 120% in a month to reach $1.80 billion. Last week, this volume almost doubled from $377 million to about $657.7 million.
This surge in trading activity has resulted in a spike in the number of holders and revenue from fees. Token holders increased by 32.5%, reaching 4.50K as of press time.
Additionally, fee revenue rose by 34% to reach $3.80 million. Despite this spike in fees, LIT trails behind Hyperliquid in terms of P/E ratio with 6.5x against 13.3x. This means that each HYPE token is generating twice as much as earnings.
As revenue grows, it creates demand for LIT, as it automatically buys back supply from the open market. The protocol directs 100% of its revenue to buybacks.
Recently, they bought about 90K LIT tokens, taking the total buybacks of this month to around 2 million. The treasury now holds more than 14 million tokens after buying 9.56 million tokens this quarter.
Can LIT price break past June’s high?
LIT has also bounced off the slanting support level that has been in place since mid-May. The trendline runs from a low of $0.90 to $1.50.
The perpetual trading pair LIT/USDT on Binance is showing a buying volume of 1.28 million tokens according to the CVD. Additionally, the buyers are gaining strength, with the momentum indicator rising above 0.166 from negative territory.
Therefore, with volumes and activity now returning to perp DEXes, it positions the altcoin to rally toward June’s high of about $1.80 or higher.
However, the altcoin faces a blockade at the $1.60-$1.70 zone, where it has multiple wicks. These wicks show there is selling pressure, which caused the price to decline to the $1.38 level, aligning with the trendline.
Final Summary
- Lighter rallied 12% after a 74% spike in Notional Trading Volume following the official launch of the SpaceX IPO.
- LIT price bounced off the slanting support level but is now facing resistance at the $1.60-$1.70 zone.