## HYPE consolidates gains while LIT plunges post-airdrop: Market Analysis of Perp DEX

The competitive landscape in decentralized perpetual markets is undergoing significant transformations. While platforms like Lighter attracted initial capital through incentivization programs, market dynamics reveal interesting patterns in price movements and liquidity flows among the key players in the sector.

### The collapse of Lighter's perpetual volume after the end of farming rewards

According to DeFiLlama data, the perpetual trading volume on Lighter experienced a sharp contraction in the weeks following the token launch. This phenomenon has been attributed by analysts like Sam from Messari to the conclusion of yield farming periods that had incentivized massive liquidity transfers from Hyperliquid. Once the artificial yields ended, most traders gradually returned to previous platforms, causing activity to decrease.

The price of LIT, starting from initial positions, has faced significant selling pressure, currently at **$2.44 with a 7.67% decline in the last 24 hours and a 9.69% loss over the week**. This movement suggests an exodus of leveraged positions and a decline in new investor confidence in the project post-airdrop.

### Hyperliquid: stabilization after Q4 sell-off

Meanwhile, **HYPE** shows signs of stabilization. In response to the contraction of perpetual volume, which fell from 396 billion to 165 billion dollars (a 60% decrease), the coin has maintained a more robust support base compared to its competitor. Platform revenues dropped from $20 million weekly in Q3 to only $7 million in December, influencing the cadence of token buybacks.

However, the price action of **HYPE** currently trades at **$24.36 with a 0.24% decline in 24 hours**, but the weekly decrease of 7.75% remains contained compared to the pressures on LIT. Analysts hypothesize that a potential return of traders to Hyperliquid could catalyze a recovery in traction and fees.

### Technical prospects and market dynamics

Sam from Messari highlighted that the real differentiator is not short-term fee compression but rather the ability to maintain a stable user base. He predicts that HYPE could outperform LIT in the coming months, considering how liquidity retention is the critical factor in a market where platform choice remains fluid.

From a technical standpoint, HYPE shows resistance levels around $27, while the lower support test remains under construction due to market volatility. The performance divergence between the two platforms reflects the general principle that in decentralized crypto markets, network effects and technological execution quality hold greater significance than temporary incentives.

### Closing considerations

The consolidation phase in the Perp DEX segment will continue as long as major projects do not demonstrate clear differentiation in their competitive advantages. In the short term, HYPE's movement will depend on its ability to retain volume and generate sustainable fees, while LIT will need to face the challenging transition from distribution phase to genuine platform utility.