🌎 Jupiter Repurchases 4.88 Million JUP Tokens Worth $3.33 Million

Jupiter Kicks Off JUP Token Buyback, Repurchasing $3.33 Million Worth of Tokens

Jupiter has initiated its first JUP token buyback, with on-chain data confirming that 4.88 million JUP tokens, valued at $3.33 million, have been repurchased. This buyback marks the first step in Jupiter’s larger strategy to allocate 50% of its protocol fees towards repurchasing JUP tokens.

Buyback Initiative Aims to Boost Demand and Reduce Token Circulation

The buyback initiative, unveiled on February 13, aims to reduce the number of JUP tokens in circulation by locking repurchased tokens for three years. This move is expected to generate consistent buying pressure and boost demand for the token. The cryptocurrency community has welcomed this initiative, viewing it as a net positive that will prevent JUP from becoming a “value trap.”

Jupiter is projected to spend around $50 million on JUP buybacks this year, based on its $102 million revenue in 2024. These buybacks would represent approximately 2.7% of JUP’s $1.8 billion market capitalization.

Jupiter’s Revenue Growth and Market Position

Jupiter has maintained its position as Solana’s top DEX aggregator, generating fees by directing trades among various DEXs, such as Raydium and Orca, and ensuring traders receive the best exchange rates. The protocol’s revenue has increased significantly over the past year, driven in part by the memecoin trading frenzy on Solana.

The Jupiter Perps trading platform, which holds over 80% of Solana’s perpetual decentralized exchange market, has been a key contributor to Jupiter’s revenue growth. In 2024, revenue increased sharply from $3 million in January to $21 million in December.

Token Value-Accrual Methods in DeFi

Jupiter’s buyback initiative is in line with a larger DeFi trend, where protocols such as Aave and Ethena are implementing token value-accrual methods. Although the long-term effects of this initiative are yet to be seen, it demonstrates an increasing emphasis on aligning tokenholder value with protocol growth.