Crypto Markets Start 2026 Cautiously as Lighter Launches LIT and DeFi Activity Picks Up

Source: DefiPlanet Original Title: Crypto Markets Start 2026 Cautiously as Lighter Launches LIT and DeFi Activity Picks Up Original Link: https://defi-planet.com/2026/01/crypto-markets-start-2026-cautiously-as-lighter-launches-lit-and-defi-activity-picks-up/

Quick Breakdown

• Lighter launches LIT token with airdrop, sparking DeFi discussion and planned listing on a major compliance platform.
• A leading DEX executes buyback and burn of governance tokens, while another DEX expands perpetuals markets.
• Trip.com integrates USDT/USDC payments, highlighting stablecoins’ growing role in real-world transactions.

Crypto markets opened the new year with muted price action as thin holiday liquidity kept volatility and liquidations subdued, according to CoinMarketCap’s latest Market Pulse report released on January 2.

Market overview and holiday liquidity

Total market capitalization rose slightly by 0.33% to $3.01 trillion, with Bitcoin slipping 0.23% and Ethereum gaining 1.83%. Liquidations remained low, often under $200 million per day, with some days falling below $100 million. Funding rates across the market stayed muted, though select altcoins displayed rising leverage demand. Traditional equities also struggled into year-end, with the S&P 500 down 0.86% and the Nasdaq off 0.84%, signalling broader caution across asset classes.

Key developments in crypto and DeFi

Lighter, a growing perpetual decentralized exchange, officially launched its Lighter Infrastructure Token (LIT) alongside an airdrop, sparking debate within the DeFi community. The protocol plans to use revenue from Lighter products for token buybacks. Early data shows Jump Crypto wallets received approximately 324,000 LIT, likely linked to market-making incentives, while a major compliance platform has announced potential listing plans once liquidity thresholds are met.

Meanwhile, a leading DEX completed its UNIfication upgrade, instituting a fee-based buyback-and-burn mechanism and executing an additional 100 million governance token burn. Another DEX launched perpetuals markets with over 100 trading pairs powered by Orderly, while Lifinity shut down after four years, enabling users to redeem xLFNTY tokens and NFTs for USDC.

Other notable updates include Flow suffering a $3.9 million exploit, with the team restarting the chain and isolating affected accounts, and Shade Network debuting a privacy-focused Layer 2 solution with stealth addresses, private mempool, and zero-knowledge settlements. Trip.com also integrated USDT and USDC payments, continuing the trend of stablecoins entering real-world commerce.

Overall, the start of 2026 shows crypto markets drifting sideways amid low liquidity, with new token launches, DeFi upgrades, and stablecoin adoption driving attention.

Meanwhile, Metaplanet Inc. continued its aggressive Bitcoin accumulation, marking another quarter of significant purchases and solidifying its status as one of Asia’s most active corporate Bitcoin holders.