LITLITLighter
$2.82
24h
-12.86%

LIT as catch-up trade with distribution expansion thesis

Bullish+21.67%

AI Summary

The author presents LIT as a catch-up trade to HYPE with strong distribution expansion potential through the Robinhood Wallet partnership, expecting outsized returns from meaningful expansion.

$LIT increasingly looks like the catch-up trade for anyone who missed $HYPE. On metrics alone, Hyperliquid wins. LIT 90d volume: -23.8% vs. HYPE: +14.7% LIT 90d fees: -14.1% vs. HYPE: +3.5% But on the distribution side, we're seeing a shift. Since July, Robinhood has used Lighter as the exclusive perps engine inside Robinhood Wallet, with revenue split 50/50. Robinhood Wallet accounts for just $98M of Lighterโ€™s $33B in 30-day volume. And while the market already values LIT and HYPE at almost identical fee multiples: 21.1x vs 21.4x. The LIT thesis rests on expanding distribution. That's why $LIT is up 162% vs. $HYPE 34% over the past 90 days. Any meaningful expansion of Lighter or Robinhood will continue to generate outsized returns imo.

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