Solana-based Jupiter decentralized exchange has announced a dynamic $JUP buyback plan. From now on, 50% of the firm’s revenue will be used to buy JUP tokens. The move stirred the market, and the token’s price rose by an overwhelming 40%.
The firm made the statement via an X post on Sunday, January 26, 2025, stating that:
“50% of Jupiter protocol fees will be used to buy back JUP from now on.”
$JUP Ranks 7th among Solana DApps
The decision by Jupiter decentralized exchange comes hot on the heels of an announcement showing the firm’s revenue reached some $102 million in 2024, meaning that the platform is ranked seventh among Solana DApps. According to the company’s statement, the firm’s primary source of revenue, Jupiter Perps, has an 84% market share among the players in the Solana Perpetual DEX Market. It should be noted that the firm’s income increased 7-fold between January and December 2024, with the income growing from $3 million to over $21 million.
The last surge in value happened during the closing weeks of December 2024. Sources indicate that it was incentivized by the launch of the $TRUMP token, resulting in a revenue spike of $35.8 million, close to 40% of the total income earned in 2024. Based on the announcement that the firm will be implementing a $JUP buyback plan, the firm is likely to spend up to $50 million on the project, amounting to at least 2.4% of the platform’s current market cap of over $2.04 billion.
December 2024 Revenue Growth Associated with $TRUMP Token Launch
The announcement to allocate half of the firm’s revenue to a $JUP buyback plan had an immediate and significant impact. According to CoinMarketCap, $JUP was trading at $0.45 on Sunday, January 26, and reported a 24-hour trading volume of over $120 million. The announcement of the buyback plan led to an immediate 10% price increase one hour later to trade at $0.495, with a 50% surge in trade volumes at $180 million.
Leading cryptocurrency exchanges like FTX and Binance recorded increased activity on their $JUP/USD trading pair, with the two platforms seeing a 15% increase in volume. Concerning the chain metrics, there was a significant increase in active wallet addresses from 10,000 to over 15,000 within the same hour after the $JUP buyback plan was announced.
Experts now predict the buyback strategy will create a positive feedback loop that would increase the token’s demand and its price over the short term. Moreover, Jupiter’s decentralized exchange collaboration with Meteora and Moonshot is also expected to promote Jupiter’s position in the DEX market and revenue streams as the token becomes more attractive to investors.
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The Plan is to Avoid Selling $JUP for Operational Purposes.
Announcing the strategic move, Jupiter founder Meow, who goes by the pseudonym, stated that the idea behind the $JUP buyback plan was to avoid selling the token for operational purposes. Meow maintained that $JUP was meant to become a mechanism that aligns the ecosystem and should continue, reserving a sales-only approach for long-term partnerships. Meow observed that the token’s prevalent focus on buybacks would lead to greater community engagement and participation to retain the token’s intrinsic value.
Additionally, Meow opined that every cryptocurrency was a “meme coin,” highlighting the importance of creating a “memetic” appeal and community building that could help increase the token’s value.
Conclusion
The $JUP buyback plan announcement caps a series of events that have seen Jupiter’s Decentralized Exchange move firmly into the AI and meme coin space. The market reaction demonstrates the growing influence of AI-powered dynamics in the crypto industry and how new developments and crypto sentiments can create new opportunities for investors.
Frequently Asked Questions (FAQs)
What are Memecoins?
Meme coins are a class of cryptocurrencies that aim to inject internet humor, such as jokes and pop culture, into elements of digital finance.
Are meme coins like $JUP important to the crypto industry?
Meme coins are a powerful way to communicate ideas people can easily relate to. They can help tell essential stories using memes that people can enjoy relating to.
What makes a successful meme coin?
An active and engaged community of token holders plays a crucial role in sustaining a token’s popularity, and the market reaction to $JUP has shown how that happens.
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