LIT skyrocketed overnight, with the Robinhood narrative and deflationary narrative igniting the rally.

On the news front, the Robinhood chain launched in early July, and Lighter was selected as the default perpetual DEX partner, directly targeting 24 million funded accounts.

Robinhood users could originally only trade spot with 2x leverage, but Lighter offers 5-50x perpetual contracts, 7×24 trading, and the ability to use crypto as margin—effectively opening a capital channel for LIT from U.S. stock retail investors to on-chain derivatives.

The tokenomics also dropped a bombshell—on June 30, Lighter announced a shift from "buyback and lock-up" to "full burn," with the first burn of approximately 15.5 million tokens, accounting for 6.3% of the circulating supply. Protocol revenue directly becomes deflationary fuel, fundamentally changing the supply-side logic.

In terms of contract data, open interest increased by $29.9 million in a single day, with nearly 57% of the circulating supply staked, meaning there wasn't much sellable supply on the market to begin with. Vitalik mentioned Lighter during a fireside chat, which also brought some attention.

But there's one detail worth noting—on July 6, a whale swapped 1,126 ETH for 5,776 LIT, with a paper loss of nearly $2 million. Either there was a bug in the tool, or the LIT-ETH trading pair itself has liquidity issues.