Sleeping Giant? Jupiter (JUP) Buyback Reaches 80M JUP Milestone

Solana-based decentralized exchange (DEX) aggregator, Jupiter, has reached a new milestone in its token buyback program. The exchange has repurchased approximately 80 million JUP tokens, signaling a deepening commitment to reducing supply and strengthening value retention.

The 80 million JUP buyback milestone highlights a sharp uptick in Jupiter’s commitment to tightening its token economy. The tokens are worth over $40 million. Notably, the latest repurchase effort builds on January’s strategy, when 50% of protocol revenues were used to buy and burn JUP, pushing its price roughly 60% higher.

Jupiter’s Market Metrics

Notably, a core driver of Jupiter’s buyback mechanism is revenue allocation. Roughly 50% of the platform’s daily revenue flows into a specific address. This enables continuous JUP token repurchases. Following repurchase, the tokens remain inaccessible for a fixed three-year holding period.

To improve transparency, the platform also announced it will introduce a buyback-tracking dashboard. This will enable stakeholders to monitor repurchase activity in real time.

At the time of the announcement, JUP surged to 40% from its low of $0.90 to $1.27 before slightly declining. Currently, the asset is trading at $0.525, which is below its initial low of $0.90. 

If the protocol’s current revenue-allocation ratio holds steady at 50%, the recent 80 million JUP repurchase could be only the first in a series of progressively larger token acquisitions.

Within the last 24 hours, its native token JUP has seen a price increase, even though the asset has struggled to break above $0.5 level. The token’s response has been mixed. However, the buyback may perhaps start impacting price more positively.

Ambitious Buyback Forecast

According to data from CoinGecko, JUP has recorded a historical peak price of $2 and a low of $0.3064. At present, the token trades 74.98% beneath its all-time high and 63.31% above its lowest point.

Interestingly, projections suggest the exchange may repurchase as much as $100 million worth of JUP annually. This approach intends to apply consistent supply-side pressure and support price stability and growth.

Although earlier unlock events have been digested by the market, future token releases could erode price support unless met with intense buying pressure or sustained buyback programs.

Meanwhile, JUP was launched on January 31, 2024, on Solana. The launch accompanied a significant community airdrop event, with approximately 955,000 wallets qualified to claim the tokens.

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