Lighter token LIT has fallen more than 11% from its intraday high in the past 24 hours. The price dropped from $1.663 to $1.4725, with selling volume increasing by about 20% intraday. After a short-term rebound in the previous two days, market trading activity failed to keep up, and the price weakened again.

Spot trading has cooled significantly.

The immediate backdrop to the market downturn is a significant decline in LIT spot trading activity. Data cited by Blockworks shows that Lighter's daily active traders dropped by approximately 50% over the past week, from 15,411 to 7,972.

Spot trading volume has also contracted significantly. On June 17, LIT spot trading volume was approximately $1.738 billion, but it has since dropped to approximately $531 million, a decrease of more than three times compared to previous levels. The previous day, the token's spot trading volume had fallen to $182 million, hitting a near one-month low.

Revenue and cash flow weakened in tandem

The cooling trading volume has also dragged down protocol revenue. Data shows that Lighter's daily revenue has dropped to approximately $40,000. Meanwhile, outflow pressure has increased, with about 30 trades generating $445,300 in selling pressure, indicating that short-term selling is still ongoing.

In terms of price movement, LIT rebounded along the upward channel in the past two days, but weakened after touching $1.70 and subsequently fell below about $1.60, with short-term selling pressure increasing significantly.

$1.50 becomes the short-term focus

The article mentions that LIT open interest continued to rise during the pullback. In the past few hours, open interest rose from $24 million to over $25 million, indicating that derivatives positions continued to increase as prices fell, and market bearish sentiment strengthened.

Looking at the market performance, after LIT fell below $1.50, there was some buying support, indicating that bulls were still trying to defend this level. However, overall trading volume and activity have not yet recovered, and the basis for a rebound remains weak. The report also mentioned that DEX-related tokens have generally performed weakly recently, with Hyperliquid's HYPE also in a similar market environment.