LIT was once shrouded in the halo of compliance narratives, but now that veneer is peeling away. From the glory days at the peak of airdrops to a current weekly decline of 30% setting new lows, from daily trading volumes often reaching hundreds of billions to daily revenues of less than $10,000—this seemingly revolutionary "zero-fee, retail-friendly" model has begun to show signs of fatigue.

Where is the problem? Summed up in three words: can't hold up.

First, let's look at the selling pressure. An airdrop scale of $675 million sounds grand, but the reality is harsh—nearly 50% of the airdropped tokens have already been dumped into the market. The weekly sell-off of 15.5 million LIT tokens is evident, and the project's buyback measures (worth $550,000) are powerless against this wave of selling. Even more concerning, by the end of 2026, tokens allocated to the team and early investors will undergo linear unlocking, with approximately 13.89 million new tokens hitting the market each month. This "loose then tight" release rhythm has completely destroyed the long-term price support foundation.

Next, the reversal of staking policies. The 1:10 staking ratio adjustment should have been a positive signal, but instead it triggered the classic "buy the rumor, sell the fact" curse. The market is voting with its feet—large amounts of capital are fleeing, and the previous consensus is collapsing.

Wait, revenue data is also not optimistic. The conversion efficiency from trading volume to actual income is clearly lagging behind competitors. This is not a cyclical decline but a structural problem—against the backdrop of increasing competition within the sector, LIT is gradually losing its competitiveness.

So, the current logic is simple: selling pressure remains, growth stalls, and competitors crush it—three major negative factors resonating together. In this situation, bottom-fishing is just taking on the bag. Being bearish is a more rational choice.