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Jupiter’s native token $JUP has emerged as the market’s top gainer, climbing 6% in the past 24 hours, despite a broader market downturn during that period. The surge follows an announcement that the Solana-based decentralized exchange will burn some of its $JUP tokens and allocate half of its fees to buy back tokens from the market.
With a strengthening bullish bias, $JUP is poised to maintain its uptrend in the short term.
Jupiter to Burn $3.6 Billion Worth of $JUP Tokens, Launches Buyback Program
Jupiter wrapped up its first-ever ‘Catstanbul 2025’ event with a keynote address delivered by its pseudonymous founder ‘Meow,’ who outlined two major plans to enhance $JUP’s value and utility.
One plan is to burn 3 billion $JUP tokens, currently valued at approximately $3.6 billion. According to Meow, this will “reduce emissions, increase certainty, and lower the fully diluted valuation (FDV).”
Meow also announced a buyback program, stating that 50% of Jupiter’s protocol fee revenue will be allocated to repurchasing $JUP tokens. These tokens will be held in a “long-term litterbox,” signaling a commitment to stabilizing the token’s value over time. The remaining 50% of fee revenue will be directed toward growth initiatives and ensuring the platform’s operational stability.
$JUP Token Reacts
These announcements have positively impacted $JUP, whose value immediately soared to a 30-day high of $1.28 on Sunday.
As of this writing, buying activity is still underway, evidenced by the token’s rising open interest. At press time, this stands at a multi-month of $364 million, climbing 25% over the past 24 hours.
Open interest measures the total number of outstanding derivative contracts, such as futures or options, that have not been settled. When it climbs during a price rally, it indicates growing market participation and increased bullish sentiment. This suggests that new money is flowing into the $JUP market, reinforcing the upward price movement.
Further, $JUP’s positive funding rate confirms this bullish outlook. At press time, this is 0.0074%, reflecting the growing demand for long positions.
The funding rate is a periodic payment designed to keep the contract price close to the underlying asset’s spot price. As with $JUP, a positive funding rate means long-position holders are paying short-position holders, indicating strong bullish sentiment and higher demand for long positions in the market.
$JUP Price Prediction: Key Levels to Watch
At press time, $JUP trades at $0.95. If buying pressure is maintained, the token’s price could extend its current gains toward $1.08. If the bullish bias strengthens, $JUP could exchange hands at $1.22.
On the other hand, a shift in the market trend toward profit-taking would invalidate this bullish projection. In that scenario, $JUP’s price could plunge below the support formed at $0.95 and fall to $0.81.