🌎 Jupiter Token Faces Decline Despite Solana Ecosystem Growth

Jupiter Token’s Recent Performance Amid Solana Ecosystem Growth

Jupiter token experienced a decline for two consecutive days, despite a significant increase in transaction volume within Solana’s ecosystem. As of September 23, Jupiter token retreated to $0.08, down from the previous week’s high of $0.89, resulting in a market capitalization of over $1.098 billion.

Transaction Volume in Solana’s Ecosystem

Data indicates that decentralized exchange transactions on Solana’s network surged by 18% over the past seven days, reaching a total of over $5.27 billion. This growth allowed Solana to surpass Ethereum, whose transaction volume dropped by 29% to $5.1 billion.

Jupiter’s Market Share and Activity

On September 23, Jupiter handled tokens worth $587 million, securing a market share of 37% with over 10,400 active wallets. Other top Solana decentralized exchange networks, including Raydium, Orca, and Meteora, also saw increased volumes, driven by the resurgence of meme coins like Popcat (POP) and Dogwifhat (WIF).

However, there are signs of declining momentum for Jupiter’s transaction volume. After peaking at $1.14 billion on September 19, the volume fell to $580 million.

Jupiter’s total assets have increased by over 5% in the last 30 days, reaching over $1.17 billion, making it the third-largest player in the ecosystem.

Impact of Recent Acquisition

Jupiter’s token pullback occurred a week after the developers acquired SolanaFM, a leading blockchain explorer. This acquisition is anticipated to bolster Jupiter’s infrastructure network ecosystem.

Challenges Ahead

A significant challenge for Jupiter’s token is its concentrated ownership structure. Nearly 92% of all tokens in circulation are held by the top ten addresses in the network. This concentration poses a risk if these holders decide to liquidate their positions.

Technical Analysis and Support Levels

On the daily chart, Jupiter token found strong support at $0.6577, a level it struggled to surpass in July, August, and September, forming a triple-bottom pattern with a neckline at $1.2200. The token has remained above the 78.6% Fibonacci Retracement level and is currently hovering above the 50-day and 25-day moving averages.