Jupiter began buying back the Jup tokens and acquired 4.88 million tokens for $3.33 million.
Jupiter, the leading distributed exchange (DEX) aggregator for the Solana blockchain, has officially launched its first buyback of Jup Tokens.
This is an important step in your strategy to increase the value and stability of your token.
On February 26, 2025, Onchain Data revealed that Jupiter had repurchased 4.88 million Jup Tokens for $3.33 million using the Jupiter Litterbox address specified for all transactions.
Jupiter (@jupiterexchange) has been making a new release for $juup💫
After 17 days, the amount has increased from $0.683
https://t.co/lkwox27pqa https://t.co/1nfz1sllsp pic.twitter.com/xkoelpjifr
– ai sou (@ai_9684xtpa) February 26, 2025
This first buyback is the first phase of a broader initiative announced on February 13th, 2025. It aims to reduce the circulation supply of Jup Tokens and create consistent purchasing pressure in the market.
50% of the fees collected by Jupiter will be used for repurchase.
The buyback program allocates 50% of Jupiter’s protocol fee for Jup Tokens buybacks. The repurchased tokens have been locked for three years, resulting in a sustained decline in supply. Doing this could drive demand and market value of tokens.
The buyback strategy was driven by robust financial performance in 2024, during which the platform generated revenue of $102 million. Based on this figure, Jupiter will spend around $50 million on repurchasing JUP throughout 2025. This represents about 2.7% of the token’s current $1.8 billion market capitalization.
This move is designed to reduce the number of tokens in circulation, and to prevent JUPs from becoming “value trapping” which could lead to increased demand. This is a term used to describe tokens whose value does not retain or grow over time.
The cryptocurrency community welcomes the initiative and sees it as a net positive for JUP’s long-term outlook.
In particular, the acquisition initiative follows a year of Jupiter’s impressive revenue growth, driven by its advantage in Solana’s decentralized trading ecosystem. As Solana’s top Dex aggregator, Jupiter promotes trading across multiple Dexs, including Raydium and Orca, ensuring that traders receive the best exchange rate.
Additionally, Jupiter’s Jupiter Perps Trading Platform was a major revenue driver. The platform commands over 80% of Solana’s persistent, decentralized exchange market.
In 2024, platform revenues surged from $3 million in January to $21 million in December. Almost 40% of annual revenue ($35.86 million) comes from a massive trading period, including a surge in Trump’s memokine activities.
The Defi protocol is increasingly adopting token valuable mechanisms
Jupiter’s buyback programme is consistent with a broader trend in the Decentralized Financial (DEFI) space, where protocols employ token attachment mechanisms to enhance ecosystems.
Platforms like Aave and Ethena have implemented similar strategies to use protocol revenue to buy back and burn tokens, or distribute value to token holders.
The long-term impact of Jupiter’s initiative has not yet been seen, but it reflects an industry-wide shift towards prioritizing token utility and stability, with close profits from token holders and platform growth guarantees that it matches.
