The native token of the Lighter decentralized exchange, LIT, plunged over 16% to a record low of $1.15 following reports that TRON founder Justin Sun withdrew $40 million from the platform’s liquidity pool. On-chain data revealed total net outflows of $155 million, with Sun stating he was “rebalancing” wallets and would redeposit the funds. Despite the sell-off, data indicates major token holders did not reduce their balances.
The native token of Lighter DEX, LIT, fell over 16% into the weekend, dropping from $1.38 to a record low of $1.15. This decline followed an on-chain report that Justin Sun had withdrawn $40.76 million from the exchange’s liquidity pool. The analyst noted Sun collectively removed $152 million, representing 18% of the platform’s total locked value in USDC.
Artemis data showed a net outflow of $155.1 million on 05 March, the second-highest daily withdrawal after an event in October. In response to community concern, Sun clarified on social media that he was rebalancing his holdings. “We still hold all LIT purchased and remain bullish on Lighter long term,” he stated, adding the funds would be redeposited soon.
Despite the significant outflows, large-scale token holders showed no change in their LIT balances throughout March. Data from Santiment indicated wallets holding between 1 million and 1 billion LIT did not sell during the downturn. This suggests the recent price plunge was likely driven by retail holders and leveraged traders rather than major whales.
