Jup token soared by 6% in the past 24 hours, defying a broader market slump, Jupiter’s announcement to burn billions of JUP tokens and dedicate 50% of its fees to buybacks has positioned the Solana-based decentralized exchange (DEX) as a market leader.
The Jupiter Token Burn and Buyback strategy has ignited strong bullish momentum. JUP’s value jumped to a 30-day high of $1.28, with analysts predicting further gains as market interest surges.
Jupiter to Burn $3.6 Billion Worth of Tokens
At the recent ‘Catstanbul 2025’ event, Jupiter’s enigmatic founder, known as ‘Meow,’ unveiled a bold two-part strategy designed to enhance JUP’s utility and stabilize its value.
The cornerstone of the plan is the Jupiter Token Burn and Buyback initiative. Meow announced the burning of 3 billion JUP tokens, valued at a staggering $3.6 billion. “This move will reduce emissions, increase certainty, and lower the fully diluted valuation (FDV),” Meow stated, emphasizing the long-term benefits of reducing the token supply.
Complementing the token burn, Jupiter plans to allocate half of its protocol fee revenue to repurchasing JUP tokens from the market. These tokens will be secured in a “long-term litterbox,” a metaphorical vault symbolizing stability and value retention. The remaining fee revenue will fund platform growth and operational resilience.
Crypto analyst and trader Mark Reynolds weighed in on the plan, stating, “Token burns are a proven strategy for increasing scarcity and, consequently, value. Jupiter’s buyback program ensures sustained demand, which will likely boost investor confidence.”
JUP Token Price Reactions
The Jupiter Token Burn and Buyback news immediately sparked a rally in JUP’s price, pushing it to $1.28—its highest point in 30 days. As of writing, JUP is trading at $0.95, with strong buying activity persisting.
Market metrics confirm growing interest in JUP. Open interest—measuring the number of unsettled derivative contracts—has surged to $364 million, up 25% in just 24 hours. A rising open interest during a price rally signals increased market participation and bullish sentiment, suggesting that new investors are entering the market.
Additionally, JUP’s funding rate has turned positive, currently standing at 0.0074%. This metric indicates that long-position holders are paying short-position holders, reflecting heightened demand for long positions and optimism about JUP’s future.
Crypto strategist Linda Carter highlighted the significance of these metrics: “A positive funding rate coupled with rising open interest is a clear indication of market confidence. Jupiter’s bold moves are paying off, attracting both retail and institutional investors.”
With momentum building around the Jupiter Token Burn and Buyback, analysts are eyeing critical price levels for JUP.
If the current buying pressure continues, JUP could climb to $1.08 in the near term. A breakout beyond this level might push the token to $1.22, reinforcing its bullish trajectory.
However, market volatility could trigger profit-taking, causing JUP’s price to dip below its current support of $0.95 and potentially fall to $0.81. Investors are advised to monitor market trends closely as sentiment evolves.
Long-Term Impact of Jupiter Token Burn and Buyback
The Jupiter Token Burn and Buyback program underscores the platform’s commitment to long-term growth and token utility. By reducing supply and implementing strategic buybacks, Jupiter aims to attract a loyal investor base and establish itself as a leading decentralized exchange.
Economist and blockchain expert Dr. Emily Huang commented, “Jupiter’s approach demonstrates a clear understanding of tokenomics. The combination of a significant token burn and a transparent buyback program creates a robust framework for sustainable growth.”
Jupiter’s plans have also sparked excitement within the crypto community, with many viewing the token burn as a pivotal moment in JUP’s journey.
The Jupiter Token Burn and Buyback initiative is more than just a market-moving event; it’s a statement of intent from the Solana-based DEX. By burning $3.6 billion worth of JUP tokens and allocating half of its fees to strategic buybacks, Jupiter is setting a new standard for decentralized exchanges.
With JUP’s price rallying and market metrics signaling strong demand, the Jupiter Token Burn and Buyback program is already delivering results.
Whether the token can sustain its upward momentum remains to be seen, but one thing is clear: Jupiter’s bold moves have captured the market’s attention.
Investors and enthusiasts are now watching closely as Jupiter continues to execute its ambitious plans, with hopes high for long-term success. Get more from The Bit Gazette
