Jupiter (JUP) is a progressive cryptocurrency that runs on top of the Solana blockchain. JUP performs well as a regular liquidity provider for this chain via the Jupiter dex it was initially created for. JUP also provides a large base for DeFi product offerings.
About Jupiter DEX and JUP token
The coin was launched at the very start of this year – on January 31, 2024. On that day, to celebrate the launch, the developer team made a generous distribution of $700 million worth of JUP to nearly 1 million Solana wallets – that was 1.35 billion. Overall, the team plans to give away 40% of the 10 billion JUP supply that was issued to the community.
JUP is a native token of the Jupiter decentralized exchange (dex) and it was created to fulfil the needs for utility and governance on the platform as it started to expand after its launch. The dex was created on the Solana chain in 2021 by an anonymous developer known to the community as Meow.
Offerings on this dex include limit orders, perpetual trading and DCA – Dollar Cost Averaging. The latter is a strategy often leveraged by crypto traders by which they purchase or sell cryptocurrencies – a little at a time in order to average out the price. Jupiter also has an in-house bridge which allows traders to conduct transactions from Solana to compatible blockchains and vice versa. Initially, the Jupiter dex was created as a liquidity aggregator for swapping tokens similar to 1inch running on Ethereum. It’s useful to bear in mind that Solana is an Ethereum competitor with communities of both chains often openly criticizing each other on social media.
JUP is currently ranked 62 on CoinMarketCap with a total capitalization of $1,375,261,432. The daily trading volume metric over the last day has increased by 38% to reach $206,938,502.
Jupiter’s plans to release a stablecoin to compete with USDT, USDC
Another feature of this dex is that it conducts automatic listings of new tokens. This allows any new token based on Solana to begin trading immediately.
The circulating supply of JUP constitutes 1,350,000,000. The total supply is 10,000,000,000. That is a lot smaller than many other altcoins offer. Still, JUP fails to beat Bitcoin with its 21 million supply, most of which has been mined already and held in cold wallets, spot ETFs or institutional investors.
Aside from JUP, the exchange has an intention to launch a decentralized stablecoin SUSD in the future. Unlike USDT and USDC that Solana developers criticize quite a lot (for various custodial and regulatory risks they are exposed to), SUSD will be backed by Solana liquid staking tokens (LSTs).
This stablecoin intends to be decentralized and it will be used for interest-free loans. SOL will be leveraged as collateral for minting SUSD earns yield and it will compensate for the cost of the minting. This will allow these loans to be interest-free on Jupiter unlike loans on other DeFi platforms.
Not the only Jupiter in the crypto universe
There are several projects that bear the same name – Jupiter, which is important to know when choosing coins to invest in. It is also vital to do your own research before buying any cryptocurrencies. In the crypto space this frequent recommendation has become an acronym – DYOR.
One of these “namesakes” of Jupiter (JUP) was based on the Ethereum chain and it is no longer active. Here is how it was described on its website: “Here is how JUP is described on the project’s website: “The Jupiter Project tried to make blockchain accessible and safe for everyone. Jupiter’s military-grade encryption helped ensure that user data was private and secure. Through this encryption technique, Jupiter powered secure dApps on public and private networks. No longer active.”
Jupiter (JUP) market behavior
Over the past two days, the JUP price has been staging a pleasurable rise, going up by more than 17% – it has soared from $0.86 to the current $1.01 mark.
However, before this impressive price rise, JUP shocked the market with a 28.40% plunge which began on April 24 and finished on May 1, taking a week.
One of the catalysts of this rally has been the strategic partnership initiated by Jupiter with Chaos Labs – a major DeFi protocols platform. According to the tweet published on April 30, it has multiple years of experience of working with other major DeFi protocols, such as GMX, AAVE and DYDX, helping them with risk management, monitoring and overall expansion and growth.
As for Jupiter, Chaos Labs will be helping them to optimize the usage of Pyth oracles and their general oracle architecture.
JUP price prediction for 2024 – 2028
Various technical indicators, such as On Balance Volume (OBV) and Fibonacci extensions show that during 2024 the JUP price could rally to $2.49. By the end of the year, odds are high that the price will go even higher.
As for the next three years, experts believe that various key updates planned by the developer team on the roadmap may take the JUP price to $4-6 by the end of 2028.
