Jupiter’s native token, JUP, entered the market swiftly on January 31st but encountered substantial sell-offs in the past 24 hours following the airdrop. As of the latest update, JUP is trading at $0.5859, reflecting a notable 63.7% decrease in its price.
The question on everyone’s mind is whether Jupiter’s price will see a resurgence. Post-airdrop, JUP’s price initially surged to $1.27, as reported by CMC. The initial offerings were set at $0.41, and during this period, JUP’s price tripled, reaching a market value of $1.72 billion. However, this uptick was followed by a sharp correction of 60%, accompanied by a spike in trading volumes to $1.3 billion.
Airdrop Official X shared details about the Jupiter token and the airdrop, highlighting that the total supply of JUP is an impressive 10 billion. A substantial portion of the 955,000 wallets engaging with Jupiter before November 2nd are eligible for the airdrop. The distribution plan involves strategically allocating 40% of the total token supply over four rounds, with the first round covering 10% or 1 billion tokens.
Interestingly, a 17-year-old reportedly earned a remarkable $1,000,000 following the Jupiter airdrop.
While no major issues were reported by 7Layer following the initial stage of the airdrop, users did encounter difficulties in the first minutes. Discussions on Solana’s Discord server noted challenges with wallets and RPC nodes struggling to meet user demands, especially in the initial 30 minutes of the airdrop.
Meow Jupiter co-founder have confirmed that “The launch pool is there for 7 days to absorb any selling pressure from airdrops or buyer’s remorse, which I believe to be sufficiently long.” and that “There no selling after 7 days. All tokens in launchpool (both usdc/jup) will be either in the team treasury or used for LP.”
In conclusion, the trajectory of Jupiter’s trading volume could significantly impact long-term price expectations. Potential investors in JUP should exercise caution, considering the risks associated with potential inflation stemming from the excitement around the airdrop. This inflation may render JUP susceptible to downward pressure. A drop in Jupiter’s price to $0.40 could present an opportunity for astute long-term investors.
