The Other Side of the Trade: Risks Beneath the LIT Hype

[madtrader]

Not all analysts are convinced the valuation is justified. Recent data show a notable drop in Lighter’s open interest, alongside comparisons suggesting LIT trades at richer multiples than Hyperliquid despite weaker fundamentals. Unlike some rivals that direct all revenue toward token buybacks, Lighter’s long-term value accrual mechanism remains less defined.

Revenue trends also raise caution flags. Following the token generation event, daily revenue fell sharply, highlighting the risk that airdrop-driven activity may fade. For Lighter to sustain its valuation — let alone justify higher targets — it will need to demonstrate durable volume, clearer token economics, and resilience once early incentives and hype subside.

[nihalsari]

watching post airdrop selling get absorbed is usually a good sign, at least short term