- Jupiter has began its JUP token buyback, buying 4.88 million tokens for $3.33 million
- The buyback will use 50% of protocol charges to decrease token provide
- The purpose is to boost JUP’s worth through provide discount, aligning with DeFi practices
Jupiter, a number one decentralized change (DEX) aggregator on the Solana blockchain, has formally launched its first buyback of JUP tokens.
This marks a major step in its technique to boost token worth and stability.
On February 26, 2025, on-chain information revealed that Jupiter repurchased 4.88 million JUP tokens, valued at $3.33 million, utilizing its designated Jupiter Litterbox deal with for all transactions.
Jupiter(@JupiterExchange) 已开启针对 $JUP 的首次回购💫
过去 17 小时已以均价 $0.683 回购 4,885,370 枚 JUP，总价值 333 万美金；所有回购交易都是通过 Jupiter: Litterbox 地址在链上进行的，目前回购仍在进行中
回购地址 https://t.co/lKWOX27pQa https://t.co/1nfZ1slLsP pic.twitter.com/xkoElpjIfR
— Ai 姨 (@ai_9684xtpa) February 26, 2025
This preliminary buyback is the primary section of a broader initiative introduced on February 13, 2025. It’s geared toward decreasing the circulating provide of JUP tokens and creating constant shopping for strain available in the market.
50% of charges collected by Jupiter for use for the buyback
The buyback program allocates 50% of Jupiter’s protocol charges towards repurchasing JUP tokens. The repurchased tokens are locked for 3 years, making a sustained discount in provide. By doing this, it doubtlessly drives up demand and the token’s market worth.
The buyback technique is underpinned by its sturdy monetary efficiency in 2024, throughout which the platform generated $102 million in income. Primarily based on this determine, Jupiter will spend roughly $50 million on JUP buybacks all through 2025. This represents about 2.7% of the token’s present $1.8 billion market capitalization.
This transfer is designed to decrease the variety of tokens in circulation, doubtlessly rising demand and stopping JUP from changing into a “value trap.” It is a time period used to explain tokens that fail to retain or develop in worth over time.
The cryptocurrency neighborhood has welcomed this initiative, viewing it as a web constructive for JUP’s long-term prospects.
Notably, the buyback initiative follows a yr of spectacular income progress for Jupiter, pushed by its dominance in Solana’s decentralized buying and selling ecosystem. As the highest DEX aggregator on Solana, Jupiter facilitates trades throughout a number of DEXs like Raydium and Orca, making certain merchants obtain optimum change charges.
Moreover, Jupiter’s Jupiter Perps buying and selling platform has been a key income driver. This platform instructions over 80% of Solana’s perpetual decentralized change market.
In 2024, the platform’s income surged from $3 million in January to $21 million in December. Practically 40% of its annual income—$35.86 million—got here from high-volume buying and selling durations, together with the surge in TRUMP memecoin exercise.
DeFi protocols more and more adopting token value-accrual mechanisms
Jupiter’s buyback program aligns with a broader pattern within the decentralized finance (DeFi) house, the place protocols are adopting token value-accrual mechanisms to strengthen their ecosystems.
Platforms like Aave and Ethena have carried out comparable methods, utilizing protocol revenues to purchase again and burn tokens or distribute worth to tokenholders.
Whereas the long-term results of Jupiter’s initiative stay to be seen, it displays an industry-wide shift towards prioritizing token utility and stability, making certain that the pursuits of token holders and platform progress are carefully aligned.