Lighter's LIT token, the native asset of the decentralized perpetual exchange, fell roughly 11% in the early hours of Oct. 24 as selling pressure hit the perpetual market, according to market data cited by AMBCrypto.
Perpetual netflow data showed traders withdrew $2.4 million from the market over the past 24 hours, a sign that participants were reducing exposure. The decline also triggered losses among long traders, who were liquidated at a far higher rate than short traders.
Long liquidations dominate
According to CoinGlass, long traders lost about $999,000, compared with roughly $87,000 in short liquidations. That means long liquidations were nearly 10 times larger than short liquidations during the decline.
The scale of those losses highlights the risks of holding long positions in the perpetual market during a selloff, even as other indicators pointed to continued bullish positioning.
Funding rate stays positive
Despite the capital outflows from perpetuals, the Funding Rate remained positive at 0.0055% at press time. A positive funding rate indicates that long positions were dominant in LIT's market.
Spot market activity also diverged from the perpetual outflows. CoinGlass data showed traders spent roughly $521,009 accumulating LIT while its price declined, suggesting some market participants viewed the drop as an opportunity to add exposure.
Buyback program in focus
Lighter has spent about $2.2 million purchasing its own token from the market, according to DeFiLlama, reducing the available supply. The buyback program is one factor that could influence LIT's near-term performance alongside demand from spot buyers.
Other conditions would also need to align. Market sentiment toward LIT was neutral at press time, according to CoinMarketCap, and broader market sentiment would need to improve with more capital flowing into the market. At present, outflows have exceeded inflows.
