Since TGE, Lighter has struggled to retain open interest, and the price of $LIT clearly reflects this.
Market cap divided by total OI has ranged between 0.3-0.6, hinting towards there being a relationship between the price of LIT and open interest on the exchange.
The decrease in OI can partly be attributed to the market selloff this year, which saw OI decline across all perp DEXs.
On Hyperliquid, however, OI has been in an uptrend, increasing from $5B to $6B over the past month, primarily due to the growth of HIP-3 perps.
Hyperliquid & HYPE is benefitting from the tradfi perps narrative and the growth of Tradexyz.
Lighter's best chance at stopping this TVL & OI bleed might be to become a competitive/better venue for these markets in terms of execution cost, liquidity & as little ADL'ing as possible.
