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Solana-based perpetual exchange network Jupiter’s native token, JUP, has surged over 25% following several major announcements at its first-ever event, Catstanbul 2025.
What’s Behind JUP’s Sudden Rally?
The token’s significant price increase can be attributed to several key factors. Firstly, Jupiter burned 3 billion JUP tokens, valued at approximately $3.6 billion at current prices. This token burn accounts for 30% of the total supply, reducing the total supply of tokens in circulation and creating scarcity that can drive up the token’s value as demand increases.
Token Buyback and Reserve Plans
Additionally, Meow, the pseudonymous founder of the exchange, announced plans to allocate 50% of fees generated on the platform to buy back JUP tokens and lock them in a long-term reserve. These mechanisms reduce the total supply of tokens in circulation, creating scarcity that can drive up the token’s value as demand increases.
Expansion Plans and Growing Prominence in DeFi
Other announcements that piqued investor interest were details about expansion plans for its omnichain network, Jupnet. JUP is expected to play a key role within Jupnet, thereby enhancing its utility. The total volume locked within the protocol has been steadily rising over the past week, surging over 21% since January 14 to $2.87 billion at press time.
Investor Interest and Demand
JUP’s recent rally has also been supported by its growing prominence in the DeFi sector. The altcoin has become the most-bought token by smart money in the last 24 hours. Demand from derivative traders has also grown over the past couple of days, with open interest in JUP’s futures market reaching its all-time high of $363.92 million.
JUP Price Analysis
On the daily chart, JUP’s price has remained above the 50-day and 200-day moving averages, with the shorter MA poised to cross over the longer one, which could lead to the formation of a golden cross. If this crossover is confirmed, it could signal a continuation of the uptrend, with bulls gaining control of the market.
Key Indicators and Potential Price Movement
The MACD and price oscillator lines were also pointed upwards, indicating increasing buying pressure on the altcoin. Based on these indicators, JUP could continue its rally to retest $1.41, its highest point from December last year. A break above this level could pave the way for a move toward its all-time high of $2, representing a 40% increase from its current price level.
At press time, JUP was exchanging hands at $1.18 per coin.
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