Jupiter (JUP) Gains Amid Massive $3 Billion Token Burn and Buyback Plan

• Jupiter announces two crucial strategies to reduce emissions – launch a buyback strategy and burn $3.6 billion worth of JUP.
• Under the buyback strategy, 50% of the protocol fees would be used to make additional purchases, while the remaining 50% goes into the growth initiative. 

Jupiter (JUP) defies the odds as it suddenly flips its bearish trend into a bullish one amidst the ongoing broad market pullback. As noted in our earlier post, the asset has surged by 15% in the last 24 hours to hit $1. Fascinatingly, its gains on the 1-hour chart had also skyrocketed to 8.9%, dragging its market cap to $1.7 billion at the time of writing.

Reasons Behind Jupiter’s (JUP) Price Surge

Exploring some of the factors behind this growth, CNF discovered that investors are significantly reacting to the keynote address of the pseudonymous founder “Meow” at the Catstanbul 2025, which highlighted the plans to enhance the value proposition of the token without affecting its utility.

In the address, Meow disclosed that Jupiter may burn 3 billion JUP tokens ($3.6 billion). As we mentioned in our previous news brief, this exercise would subject the price to a significant surge. Additionally, it would increase certainty, reduce emissions, and lower the Fully Diluted Valuation (FDV).

In addition to the burning exercise, the Jupiter founder pointed out that there would be a buyback program where 50% of Jupiter’s protocol fee would be used to repurchase the token. After this, the acquired tokens would be kept in a “long-term litterbox” to stabilize their value over some time. Meanwhile, the remaining 50% would go into the growth initiative and sustain the platform’s operations.

Source: Ashen on X

Following this report, the JUP’s Open Interest (OI) skyrocketed by 25% in just 24 hours to reach $364 million. A surge in this metric is historically associated with increasing market engagement and bullish sentiment. Adding to this, we found that the JUP’s funding rate has also reached 0.0074% to reflect the rising demand for long positions.

Jupiter’s $500 Million Airdrop

In a recent update, we highlighted that Jupiter airdropped 700 million JUP ($500 million at that time) to eligible wallets. However, this failed to salvage the price from the broad market headwind at that time as it declined by 9% in just 24 hours.

Prior to this slump, the price had surged to $1.15 on January 18, coinciding with the successful launch of the official Trump’s memecoin (TRUMP). Within the period, JUP’s trading volume jumped to $1.46 billion. However, this declined to $220 million a few days ago. At press time, the volume had bounced back to surpass the previous high to reach $1.74 billion.

Looking at the current sentiment, analysts believe that JUP could rise as high as $1.4 once it breaches the critical resistance level at $1.05. Amid the backdrop of this, its Relative Strength Index (RSI) also reads above the neutral level with more room for growth before entering the overbought territory.