lighter

The decentralized perpetual futures market is shifting power dynamics again. Hyperliquid has regained its status as the largest perp-DEX by trading volumes, while Lighter has faced a sharp decline in activity and a crash of its own token LIT to an all-time low. Additional pressure on the sector is exerted by the overall weakening of the crypto market.

The perpetual DEX landscape just flipped again — but this move feels different.

After weeks of noise driven by incentives and airdrop speculation, Hyperliquid has decisively reclaimed the top spot in both 7-day perpetual volume and open interest. Not by hype. Not by short-term rewards. But by liquidity — the only signal that actually matters to serious traders.

Over the past week, Hyperliquid surged to roughly $40B+ in perp volume, comfortably ahead of the field. At the same time, it now controls the largest slice of open interest, sitting near $9.5B. That combination is critical: volume shows activity, but open interest shows commitment. Traders aren’t just passing through — they’re parking size.

The contrast with Lighter is stark.

Lighter’s explosive rise was powered largely by airdrop momentum. When incentives peaked, volumes followed. But as that tailwind faded, activity cooled rapidly — nearly a 3× drop from peak levels. This isn’t a failure; it’s a reminder of how fast mercenary liquidity rotates once rewards disappear. In perps, sustainability is ruthless.

Hyperliquid, by comparison, didn’t need a narrative reset.

Its orderbook depth, execution quality, and consistent uptime kept pulling flow back as soon as competitors started bleeding activity. In perp markets, traders don’t debate ideology — they follow slippage, spreads, and fill reliability. Right now, those metrics point overwhelmingly in one direction.

What makes this phase more interesting is that this isn’t a simple “winner-takes-all” story.

While Lighter cools, new challengers are quietly climbing. Variational has pushed into the top tier, now printing around $1B in daily volume. That’s not retail noise — that’s meaningful flow. It signals that the perp DEX arena is maturing into a multi-player battlefield rather than a single dominant venue.

Even mid-tier platforms like Aster are maintaining notable open interest, showing that traders are actively diversifying venues based on strategy, latency, and product design — not just incentives.

Zooming out, the takeaway is clear:

Perp DEX dominance is no longer decided by launches or token events alone. It’s decided by who holds liquidity when the music stops. Open interest is sticky capital. And sticky capital is the foundation of long-term dominance.

Right now, Hyperliquid isn’t just leading — it’s absorbing flow at moments when competitors are vulnerable. That’s usually how real separation begins.

The only open question left is timing.

Is Hyperliquid still in the early phase of a deeper expansion…
or is this the point where the gap starts to widen faster than anyone expects? 👀

Momentum in perps doesn’t wait — it compounds.

#DeFi #Perps #Crypto #Lighter $LIT

Lighter has officially announced the launch of a new staking mechanism for its native token, LIT, making staking a mandatory requirement for users who wish to access the Lighter Liquidity Pool (LLP). The new rule takes immediate effect for new participants, while existing liquidity providers are granted a two-week grace period, ending on January 28, to comply with the updated requirements.
Under the new model, users must stake LIT at a 1:10 ratio, meaning that for every 1 LIT staked, users can deposit up to 10 USDC into the LLP. Once the grace period expires, maintaining an active LIT stake will become a strict prerequisite to keep funds within the liquidity pool.
According to Lighter, the move is designed to better align incentives between LIT holders and liquidity providers, while also improving the risk-adjusted returns of the LLP. The Liquidity Pool remains a core component of Lighter’s ecosystem, serving both as a yield-generating mechanism and as an insurance layer in the event of liquidations. Lighter also noted that a similar staking-based access model may be extended to other public liquidity pools in the future.
Beyond LLP access, users who stake at least 100 LIT will benefit from zero withdrawal and transfer fees, along with additional staking rewards. While the staking APR has not yet been disclosed, the team confirmed that yield incentives will be introduced as part of the broader token utility framework.
Lighter also plans to adjust premium fees for market makers and high-frequency trading firms. While overall fees for these participants are expected to increase, LIT stakers will receive preferential fee discounts, reinforcing the token’s role within the trading ecosystem. Retail traders, meanwhile, will continue to enjoy fee-free trading, according to the announcement.
The staking feature is expected to roll out on Lighter’s mobile application in the near future, following the project’s recent app launch. LIT was officially issued last month, with 50% of the total supply allocated to ecosystem development, including airdrops and incentive programs. In addition, Lighter began buying back LIT tokens on January 5, aligning with its long-term tokenomics strategy.
Since launching its public mainnet in October, Lighter has rapidly emerged as one of the largest perpetual trading platforms in the market, recording over $200 billion in trading volume in December alone. The project recently raised $68 million at a $1.5 billion valuation, underscoring growing institutional interest. At the time of writing, LIT is trading at approximately $2.07, down 2.56% over the past 24 hours.
This article is for informational purposes only and represents a personal blog-style analysis. It does not constitute investment advice. Readers should conduct their own research before making any financial decisions. The author bears no responsibility for investment outcomes.
👉 Follow for timely crypto news, protocol updates, and in-depth market insights.
#Lighter #CryptoNews