The price of JUP, the token for Jupiter, a decentralized exchange (DEX) on the Solana blockchain, has soared by 25% in 24 hours. This was after a big event where a total of 3 billion JUP tokens were burnt and the Jupiter team made a series of big announcements.
Both a reward and governance token, JUP is the token used on the Jupiter platform. It is central to user utilization of platform features and services. Just recently, the Jupiter team decided to burn 3 billion JUP, or 30 % of the total supply, of their tokens. Burning tokens is a move that permanently removes these tokens out of circulation, which means the remaining tokens become more valuable because there are fewer of them around. What this action does is similar to what other crypto projects, such as SHIB, have done to create scarcity and increase demand.
Along with the token burn, Jupiter’s founder, known as Meow, shared another big plan: 50% of all platform protocol fees will now be used to buy back JUP tokens from the market. These tokens will be saved to a long term reserve, called the ‘litterbox’. The intention behind this buyback strategy is to support and maintain the price of JUP in the long run so that the value of our token does not drop after such news events such as this one.
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Aside from the announced burn and buy plans, Jupiter also announced new updates at ‘Catstanbul’, a major Jupiter event. Among the big announcements was that about Jupnet, which is an omnichain network that will enable liquidity across multiple blockchains. This implies that JUP will have a major role to ease and efficient transactions on various blockchains.
With a trading environment on JUP’s side, and these updates happening, JUP has become one of the top performing tokens in recent days after rallying to $1.22. Investors are still holding on to the hope of this going upward direction to continue, and JUP taking even higher prices in the future.
Also read: Cardano Price Set for 40% Jump as Analysts Predict Upcoming Rally
