Jupiter is a renowned Solana-based swap aggregator that has recently gained significant attention from investors as the price has been increasing for over a couple of days. The price of Jupiter (JUP) extends its gains, trading around $1.23 and rallying nearly 10% on January 28, 2025, after a 7% increase the previous day. The bullish trend of JUP was boosted when the recent Jupiter buyback and 3 billion token burn announcement was revealed during the Catstanbul event. In addition, the on-chain metrics of Jupiter also paint a bullish image as Jupiter’s open interest, trading volume, and Total Value Locked (TVL) is increasing. In this article, we will delve into the details of Jupiter(JUP) price surge, the reason behind the surge, and the new features of Jupiter.
What is Jupiter(JUP)?
Jupiter is a popular digital currency token that operates on the leading, Solana blockchain, aiming to provide liquidity aggregation and decentralized exchange (DEX) services. The project aims to provide individuals with the best way to find any token pair to ensure low slippage and minimal transaction fees for swapping tokens.
Jupiter’s platform is mainly developed to improve the decentralized finance (DeFi) ecosystem of Solana by providing a user-friendly interface for both traders and developers. This approach allows both developers and investors to access the swap functionalities within applications or on-chain programs. With the help of blockchain technology, the project emphasizes efficiency, security, and democratization of access to financial services.
The native token of Jupiter is JUP, which serves as a governance token, allowing token holders to be a part of the ecosystem by providing them the opportunity to participate in decision-making processes that guide the development and operation of the project. The JUP token allows community members to approve, sanction and cast votes on all present and future decisions associated with the Jupiter ecosystem and platform.
Jupiter Price Approaching Resistance
The price of Jupiter (JUP) raised over 15% in the last 24 hours to trade at $1.23 as of 3.56 p.m. EST. As of January 28, 2025, Jupiter (JUP) is currently trading at a price of $0.98. In addition to the price, the market capitalization of Jupiter has also witnessed a significant surge. The market cap of Jupiter has increased by around 7% and the 24-hour trading volume has seen a staggering 114% surge so far.
However, the price of JUP is currently witnessing a steady decline for the last few hours.
The rejection from the $1.1926 might mark the end of the bullish move of Jupiter (JUP).
Jupiter(JUP) price surge: Reasons Behind the Rally
Jupiter has made a few upgrades in the past few days that are believed to have been the reasons behind the Jupiter(JUP) price surge. The upgrades have benefited the native token of Jupiter, JUP.
The ‘Catstanbul’ event took place on Saturday and Sunday have supported the price rally of Jupiter. A couple of announcements were made during the event:
- Half of all protocol fees will be used to purchase tokens from the open market, with the tokens being transferred to a ‘long-term litterbox’, which is a long-term reserve.
- Three billion JUP tokens were burned.
- Jupiter project has launched its omnichain expansion plans.
- The founder of Jupiter has set a vote to give away more than $280 million of his own JUP tokens.
Besides, the project also announced that a $10 million AI fund with Eliza Labs will be allocated to enhance the Solana ecosystem. This strategic collaboration will be the most significant one that may bolster technical developments.
All these proclamations have increased attention on the platform and drawn in new users and liquidity to the whole Jupiter ecosystem in the long run. With this, the investors and traders have turned optimistic and the purchasing activity has gained significant traction as the traders appear to be bullish on the price rally of JUP tokens.
Jupiter Display Strong On-Chain Metrics
The on-chain metrics of Jupiter have also boosted the bullish outlook of Jupiter. The futures of Open Interest (OI) in Jupiter at exchanges increased from $173.91 million on January 24, 2025, to $336.58 million on January 27, 2025, the highest level since its inception. An increase in Open Interest (OI) suggests new or extra money entering the market and new purchasing, which indicates a rally ahead in the price of Jupiter.
Trader’s Activity
Another reason behind the bullish outlook of Jupiter is the recent surge in traders’ interest and liquidity in the JUP chain. According to the data shown by DefiLlama, the trading volume of the JUP chain increased from $415.02 million on January 24, 2025, to $1.69 billion on January 27, 2025.
In addition, the TVL of Jupiter has been consistently increasing and has reached a new all-time high of $2.92 billion on January 23, 2025. This rise in TVL also suggests a growing activity and interest within the Jupiter ecosystem. It signals that more individuals deposit and leverage assets within JUP-based protocols, appending credence to the bullish rally.
Conclusion
The price of JUP has been defending the lower support zone around $0.8 since the beginning of 2025, which has currently become a strong base. As a result, the price triggered a strong rebound, representing massive bullish candles. Many reasons are behind the price surge of Jupiter such as trader’s activity, strong on-chain metrics, and the Catstanbul event. However, if you wish to invest in JUP, it is essential to conduct thorough research before making any investment decisions. Do not invest in Jupiter by examining the current price surge. The price surge can end at any time and could decline as well. Always be vigilant while dealing with the highly volatile crypto market.