The post HYPE steadies as LIT’s post-airdrop sell-off deepens: What happens next? appeared on BitcoinEthereumNews.com. Journalist Posted: December 30, 2025 The The post HYPE steadies as LIT’s post-airdrop sell-off deepens: What happens next? appeared on BitcoinEthereumNews.com. Journalist Posted: December 30, 2025 The

HYPE steadies as LIT’s post-airdrop sell-off deepens: What happens next?

The cut-throat competition in the perpetual decentralized exchanges, popularly known as Perp DEXes, has stalled the market leader, Hyperliquid. 

Rivals such as Binance-backed Aster saw significant traction in H2 2025. But most analysts considered Lighter the real threat to Hyperliquid, citing several features, including privacy.  

However, ahead of the Lighter [LIT] token debut and airdrop for early users, Messari research analyst Sam has downplayed its threat.

In fact, Sam projected that HYPE could outperform LIT in the mid-term, adding that, 

For Sam, Lighter’s perp volume was ‘falling off a cliff’ because the initial farming period that attracted most traders from Hyperliquid is almost over. 

Source: DeFiLlama

Will Hyperliquid revenue recover?

In H2, Hyperliquid’s perpetual volume dropped significantly amid rising competition and lower trading activity in Q4 2025. It fell from $396 billion to $165 billion — That’s about 60% decline in traction.  

Source: DeFiLlama

The cool-off also compressed the generated fees and revenues used to drive HYPE buybacks.

In fact, average weekly revenue dropped from $20 million in Q3 to as low as $7 million in late December -A whopping 65% revenue shortfall. 

With ongoing monthly unlocks alongside the low pace of token buybacks, bears had a field day with HYPE. However, Sam believes a reversal could be likely if Lighter farmers return to Hyperliquid. 

HYPE vs. LIT price action

Meanwhile, Lighter officially announced the LIT token, noting that 25% of the total supply of 1 billion tokens will be immediately airdropped to early users.

The rest of the tokenomics mirrored HYPE, including a 1-year vesting period for teams and utilizing revenue for buybacks

The token’s TGE listing price was $3.3, but it has dropped to $2.7, representing a 21% decline in the past seven days of trading. It experienced a 16% decline over the past 24 hours. 

On the other hand, HYPE was up over 2% in the 24 hours and could flip short-term bullish if it clears the recent peak at $26.4. The next roadblock and overheat resistance would be $27. 

Source: HYPE/USDT, TradingView


Final Thoughts 

  • Lighter perp volume has dropped following the end of airdrop farming, and the LIT price also declined. 
  • HYPE experienced a short-term bounce, but it was unclear whether the recovery would extend.  
Next: $332M Ethereum deposit meets rising ETH scarcity – Is $3.3K next?

Source: https://ambcrypto.com/hype-steadies-as-lits-post-airdrop-sell-off-deepens-what-happens-next/

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