As the week began, LIT repeatedly tested key support levels. This wasn’t just scattered profit-taking. The price action pointed to something more persistent than a short-lived panic.

The Post-Airdrop Balance Never Fully Formed

The real fracture appeared after the airdrop. The new supply dynamics never truly settled. A large portion of distributed tokens failed to stay parked on-chain for long, leaving the order book thin even during upward attempts.

Selling didn’t arrive in one wave. It came in intervals, steady enough to erode buyer confidence. That pattern explains why every rebound attempt faded quickly.

January 12 Delivered a Quiet Warning

Market commentary on January 12 shared a common note: momentum was weakening and volume wasn’t supporting price. It wasn’t an aggressive call, but it mattered. At the time, price still looked technically intact, which made the risk easier to ignore.

That disconnect created a fragile setup. Buyers stepped back. Sellers waited. The imbalance was already there.

Buyback Optimism Failed to Stick

In early January, Lighter announced a treasury buyback program directing 50% of protocol fees toward token repurchases. The move briefly lifted sentiment and pushed LIT toward the 2.89 dollar level.

Yet the recovery leaned heavily on large wallets rather than broad demand. On-chain data showed buying concentrated among a small group of whale addresses, while early investors continued selling into strength. The move never spread across the market.

At the same time, sector-wide capital rotation added pressure. The buyback was priced in, but it failed to evolve into a lasting narrative.

January 13 Was the Outcome, Not the Trigger

By January 13, the structure was already compromised. Support levels held visually, but real buyers weren’t defending them. A modest sell wave was enough to set off a chain reaction.

Thin order books, accumulated leverage and a lack of near-term catalysts converged. Liquidations followed, stops were hit and price moved down fast. The panic came after the move, not before it.

Why This Matters

What happened to Lighter isn’t unique. It highlights how quickly markets punish gaps between supply management and expectation control, especially in early-stage projects.

Product development may continue, but price doesn’t trade on potential alone. When timing is vague, liquidity is shallow and narrative runs ahead of structure, patience disappears.

What Comes Next

In the short term, the key question is whether selling pressure truly fades. Without sustained calm in on-chain activity, forming a healthy base will be difficult.

A clearly timed, measurable update from the team could still shift sentiment quickly. Until then, the market appears to have placed Lighter in a temporary holding pattern.

This move looks less like a sudden collapse and more like delayed price discovery. Whether that process has finished remains unclear — and for now, uncertainty is exactly what the market is pricing in.

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The post Why is Lighter (LIT) Price Dropping? appeared first on Coin Engineer.

Community Reaction and Allegations

Co-founder Iliensinc clarified on Hyperliquid’s Discord channel that the address 0x7ae4…1028 does not reflect the company’s standards or ethical values. Previously, community member cobe.hype claimed the wallet was one of the team accounts responsible for selling approximately 4,000 HYPE tokens ($134,000) in a single day last November.

Strict Trading Policies

Hyperliquid enforces strict trading rules for employees and contractors:

• Derivatives Trading Ban: Team members and contractors cannot open short or long positions on HYPE, nor can they engage in any derivatives trading.

• Zero Tolerance for Insider Trading: Team members must not trade based on non-public, material information and must not share such information with third parties.

Violations may lead to immediate termination and potential legal action, ensuring accountability and adherence to industry standards.

Hyper Foundation Executes Critical Governance Move

Hyper Foundation has taken a key governance step that directly affects the supply side of the Hyperliquid ecosystem. The Foundation proposed to reset the Aid Fund, permanently removing approximately $1 billion worth of HYPE tokens from circulation.

The development drew widespread international crypto media coverage on December 17–18, 2025, attracting investor attention to potential market implications. Analysts note that such a significant permanent reduction in supply could tighten liquidity and create upward price pressure.

Hyperliquid’s community and investors view this action as supporting the long-term health of the ecosystem. The platform once again demonstrates that token supply management is conducted transparently and with accountability.

HYPE Performance and Volatility

HYPE experienced significant volatility in 2025. The token reached an all-time high near $60 in mid-September, followed by subsequent sell-offs. At the time of publication, HYPE trades at $25.40, down roughly 24% over the year but up 290% since its November 2024 launch at $2–3.

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The post x-Hyperliquid Employee Linked to HYPE Token Shorting appeared first on Coin Engineer.

Token Burn Details

Jupiter will burn 130 million JUP tokens, which account for roughly 4% of the total circulating supply. This move aims to optimize liquidity management and create a deflationary effect within the ecosystem. Jupiter will execute the burn transparently on the blockchain, allowing investors to verify that the team has permanently removed the tokens from circulation

All steps were determined through DAO voting, ensuring that the process aligns with the community’s decisions. Experts suggest that such token burns typically have a positive effect on the token’s price.

Role of the Litterbox Trust Fund

The 130 million JUP tokens earmarked for burning were accumulated in the “Litterbox Trust Fund,” which receives 50% of the platform’s ongoing on-chain revenues. The fund’s original purpose was to buy back tokens from the market and hold them for long-term management.

Initially, the plan was to transfer these tokens to the DAO after approximately three years. However, the community opted for a permanent burn to eliminate uncertainties regarding potential future releases and to strengthen the token’s value proposition. This step reinforces long-term confidence in the JUP ecosystem.

Market and Investor Reactions

Following the announcement, the market reacted to the reduced supply and the potential for price increases. Analysts note that removing 4% of the circulating supply may trigger short-term volatility, but long-term confidence in the token economy is expected to grow.

Investors are adjusting their positions based on this development. Crypto communities are also watching closely to see if the burn will increase interest and engagement with the project.

Importance of the Burn for the Jupiter Ecosystem

The Jupiter ecosystem considers the token burn a critical step for maintaining sustainability and price stability. It also highlights the importance of community participation in DAO governance.

• A total of 130 million JUP tokens will be burned

• Circulating supply will decrease by 4%

• Market impact and price stability will be monitored

These measures send a strong signal about Jupiter’s approach to liquidity management and community trust.

Looking Ahead: Future Revenue Flow Vote

Following the burn, Jupiter’s next focus is a community vote on how to manage ongoing revenues flowing into the Litterbox Trust Fund.

The community will decide whether the funds should be:

1. Used for continuous token burns,

2. Allocated for platform development and new features, or

3. Distributed to token holders.

This vote will define Jupiter’s long-term economic model and value proposition. Markets will continue to closely monitor Jupiter’s transparent, community-driven governance steps.

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Weekly Token Unlocks (August 5–9) 

August 5, Tuesday 

• ENA: 172 million ENA tokens (approximately $102 million) will be released into the market. This corresponds to 1.15% of the total supply and stands out as the largest unlock of the week. 
• SPEC: About 2.36 million SPEC tokens (worth $1.37 million) will be unlocked. This amounts to 12.42% of the circulating supply. 

August 6, Wednesday — MAVIA & GFAL 

• MAVIA: Approximately 5.55 million tokens (worth $878k) will be unlocked. This is 10.75% of the circulating supply. 
• GFAL: 16.67 million GFAL tokens (about $71k) will be unlocked, representing 0.32% of the circulating supply. 

August 7, Thursday — HFT 

Around 8.04 million HFT tokens (worth $544k) will be released, equal to 1.36% of the circulating supply. 

August 8, Friday — IMX, DEVVE & ACS 

• IMX: Approximately 27 million tokens valued at $13.5 million will be unlocked, making up 1.37% of the total supply. 
• DEVVE: 0.83 million DEVVE tokens ($419k) will be unlocked, representing 0.95% of the circulating supply. 
• ACS: About 274.85 million ACS tokens ($314k) will be released, which is 0.65% of the circulating supply. 

August 9, Saturday — MOVE & APE 

• MOVE: 51 million tokens (around $6.5 million) will be unlocked, equaling 0.51% of the total supply. 
• APE: 15.6 million tokens (approximately $28 million) will be unlocked. These distributions will come from investors and ecosystem funds. 

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The post $160M+ Token Unlocks Impact 6 Altcoins This Week appeared first on Coin Engineer.

But is this just another token, or a serious challenge to existing networks like Base?

INK Token: Utility First, Governance Last

According to the Ink Foundation, INK will have a fixed supply of 1 billion tokens and will not be used for governance purposes. This decision stands in contrast to most token models that rely heavily on community voting and governance dynamics. Instead, INK is being pitched as a “single-token model designed for usage, not speculation.”

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The token’s first use case will be a DeFi liquidity pool built on Aave. Users participating in this pool will likely be eligible for an airdrop, with more drops potentially planned. INK aims to provide a foundational liquidity layer for DeFi activity on the Ink network.

Part of the Optimism Mainnet Superchain Vision

Ink is part of the Optimism Mainnet Superchain initiative, which allows different Layer 2s to interoperate, share governance infrastructure, and utilize the OP Stack. Notably, Kraken’s Ink network is the first outside of Optimism itself to implement permissionless fault proofs.

Meanwhile, Base, the L2 developed by Coinbase, remains the most active with over 10 million daily transactions. However, with a unique token model and deep DeFi integration, INK could be a serious contender.

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The post Kraken-Backed Ethereum Layer 2 Launches INK Token to Rival Base appeared first on Coin Engineer.

Shiba Inu’s burn rate has significantly reduced the supply. 

• 284 million SHIB tokens have been eliminated. 

• SHIB price hasn’t shown much change in the short term. 

• Long-term market sentiment remains positive. 

• Investors are expecting a price increase in the future. 

Shiba Inu’s Token Burn Rate Soars

Shiba Inu’s token burn rate has increased by 7,240% in the last 24 hours. A large portion of the burns was carried out by an unknown wallet. This wallet sent about 1 billion SHIB tokens directly to a dead wallet. During the same process, other wallets also contributed to the burn, sending 100 million more tokens. SHIB’s price is currently trading around the $0.000013 price level. 

READ: Circle Has Rejected Ripple’s $5 Billion Purchase Offer! 

Shiba Inu Supply is Decreasing, Eyes Are on the Price 

Shiba Inu’s total supply has dropped from 999 trillion in 2020 to below 589 trillion today. In other words, 41% of the total supply has been burned. This reduction increases the scarcity of SHIB in circulation. However, despite these developments, the price has not significantly increased. SHIB has decreased by 8.3% in the past week and fell to the $0.0000186 level. SHIB’s supply, which was at 999 trillion in 2020, is now at 589 trillion. As more projects and developers integrate Shiba Inu into their platforms, the ecosystem’s value and stability are expected to strengthen over time.

In the Shiba Inu ecosystem, it’s not only individual wallets that are contributing to the burn, but projects are also supporting the process. Projects like SquidGrow are directly burning SHIB tokens, expanding the burn process. The development team is also implementing Shibarium, a layer-2 solution that makes the network faster and cheaper. This infrastructure contributes more burns with each transaction. However, according to the data, only 584.41 tokens remain in circulation. 

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The post Shiba Inu Burns 284M Tokens in 24 Hours: Major Shift in SHIB Ecosystem! appeared first on Coin Engineer.

Highlights of MELANIA Coin

$MELANIA was announced by Melania Trump’s team on Sunday, along with a link to a website where the coins could be purchased. As of Monday morning, $MELANIA was trading at approximately $11.22, with a market cap of $2.15 billion. This valuation places the coin among the top 60 most valuable cryptocurrencies globally.

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The coin is distributed on the Solana blockchain by MKT World, a Florida-based company incorporated by Melania Trump in 2021. While details about the project are limited, the website states that 35% of the supply has been allocated to the team and will remain locked for the first 30 days.

What is the Purpose of MELANIA?

The purchase link shared by Melania Trump includes a disclaimer, stating that the coin is a “digital collectible intended to function as an expression of support for and engagement with the values represented by Melania and the associated artwork.” The statement also clarifies that the coin is not intended as an investment opportunity or security of any type.

Impact on TRUMP Coin

Following the launch of $MELANIA, the price of the $TRUMP Coin, launched by Donald Trump last Friday, dropped nearly 40% to around $35. On Sunday, $TRUMP had peaked at a market cap of $15 billion, but this value fell below $8 billion after $MELANIA was launched. However, the cryptocurrency managed to recover early Monday after Robinhood announced that $TRUMP was “now available for trading” on its platform. As of Monday morning, $TRUMP was trading at $53.12, giving it a market cap of $10.62 billion and placing it as the 18th most valuable crypto by market cap.

What Do We Know About TRUMP?

Donald Trump announced his meme coin’s launch in a Truth Social post on Friday night, stating: “My NEW Official Trump Meme is HERE! It’s time to celebrate everything we stand for: WINNING!” The coin’s price surged overnight, more than tripling by Saturday morning, and briefly surpassed $75 early Sunday. The project’s website notes that 200 million tokens were initially released, with the total supply expected to gradually grow to 1 billion over the next three years. The remaining 800 million tokens are currently held by Trump Organization affiliates CIC Digital LLC and Fight Fight Fight LLC, which was incorporated in Delaware on January 7.

As of Monday morning, a total of 450,653 crypto wallets were reported to hold $MELANIA, according to the Solscan tracker.

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