Lighter [LIT] has regained market interest with an 11% gain at press time, recovering from a pullback that saw both whales and retail investors selling their positions.
The bounce follows a decline triggered by the Securities and Exchange Commission (SEC) holding back on approving tokenized stock trading, as reported by AMBCrypto recently.
On-chain activity has since returned in full, with user interest surging and LIT now on the verge of making a new local high.
LIT protocol fees hit a five-week high
The significant growth witnessed in LIT has followed a surge in on-chain usage.
Fee data from DefiLlama shows that fees generated from protocol usage have reached approximately $152,000 as of the 23rd of May, the highest level recorded since the 17th of April.
A surge of this nature typically reflects genuine growth in protocol usage driving the increase.
TVL has also seen meaningful growth, reaching a high of approximately $149 million according to the latest reading. The gradual rise in TVL signals that users are committing more assets on-chain for yield, reflecting an expectation that LIT will perform well in the near term.
From the 1st of May, $15.53 million has been added to the TVL, a solid increment for the protocol if the momentum continues to build.
This comes as perpetual trading volume on the platform has consistently held above the $1 billion threshold between the 18th and 23rd of May, reflecting sustained trading interest in the asset.
Binance drives $69.82 million in volume
Perpetual trading activity has been another clear driver behind LIT’s recent performance.
According to CoinGlass data, Open Interest (OI) surged by roughly $29.9 million as of writing, reaching $249 million in the past day. This rise in OI reflects a significant increase in the number of leveraged positions opened on LIT, indicating that traders are actively placing bets on the asset’s direction.
The Funding Rate has held positive throughout, confirming that the majority of this fresh capital has been positioning on the long side.
Binance traders have been at the forefront of this bullish positioning. The Long/Short Ratio on Binance saw a significant spike, reaching 1.8, reflecting a large concentration of buy volume on the platform.
Binance recorded $69.82 million in LIT trading volume, the largest of any centralized or decentralized exchange at the time of writing, confirming it as the primary venue driving the current rally.
KEY metric holds green as LIT targets $1.47
The structural chart analysis points to further upside for LIT from its current position.
The Balance of Power indicator continues to form green bars on the chart, signaling that buying power remains active in the market and that the asset retains the momentum to reach at least its nearest target.
If demand holds at current levels, LIT could extend its move toward a local high of approximately $1.47.
Beyond that, two additional key levels sit ahead on the chart at $1.74 and $2.03, both of which represent areas where significant buy orders are likely to be placed.
A sustained surge through the $1.47 level could generate additional momentum toward these higher targets, adding to LIT’s overall positive outlook in the near term.
Final Summary
- Lighter protocol fees hit $152,000, a five-week high, as TVL reaches $149 million
- LIT OI surges $29.9 million to $249 million as Binance drives $69.82 million in volume.
