Jupiter Starts $3.33M JUP Buyback—Bullish Signal for Investors?

• Jupiter, one of the leading decentralized exchange aggregators on Solana, has announced a $3.33 million buyback of its native token, JUP.
• Since the announcement, JUP has risen by 3.5% in the last 24 hours, while its market cap has grown by 2.27%, reaching $1.81 billion.

Jupiter Exchange has officially kicked off its first repurchase program for its native token JUP, signaling a strategic effort to boost token value and market confidence. Over the past 17 hours, Jupiter has repurchased 4,885,370 JUP at an average price of $0.683, totaling $3.33 million in value.

As revealed by on-chain analyst AI姨 on X, all transactions were conducted transparently on-chain through the Jupiter platform, reinforcing trust in the project’s financial strategy.

Jupiter(@JupiterExchange) 已开启针对 $JUP 的首次回购

过去 17 小时已以均价 $0.683 回购 4,885,370 枚 JUP，总价值 333 万美金；所有回购交易都是通过 Jupiter: Litterbox 地址在链上进行的，目前回购仍在进行中

回购地址 https://t.co/lKWOX27pQa https://t.co/1nfZ1slLsP pic.twitter.com/xkoElpjIfR

— Ai 姨 (@ai_9684xtpa) February 26, 2025

Token buybacks are a common mechanism in both traditional finance and crypto, where a project repurchases its tokens from the market, effectively reducing supply. This can increase scarcity and put upward pressure on prices, making it a bullish signal for investors.

Market Reaction and Impact on JUP

The market responded quickly to Jupiter’s buyback announcement, driving JUP’s price up by 3.5% to $0.685. However, despite the price surge, JUP’s 24-hour trading volume declined by 45% to $164 million, suggesting a shift in investor behavior. The impact of this development extended beyond JUP, influencing the broader Solana ecosystem, where SOL dipped by 1.2% to $136.50, highlighting the interconnected nature of the crypto market.

As highlighted in our previous news brief, Jupiter plans to allocate approximately $50 million toward JUP buybacks this year based on its $102 million revenue in 2024. This initiative represents about 2.7% of JUP’s $1.8 billion market capitalization, underscoring the project’s commitment to boosting the token’s value.

The buyback has sparked a 15% surge in active addresses interacting with JUP tokens, signaling increased engagement from both retail and institutional investors. To maximize its impact, Jupiter strategically executed the repurchase across multiple trading pairs, including JUP/USDT, JUP/SOL, and JUP/ETH, with the highest trading volume recorded in the JUP/USDT pair. This buyback strategy helps mitigate risks associated with single-pair dependency while ensuring a broader and more sustainable market impact.

Jupiter’s buyback is impacting price action and driving increased on-chain activity. Transaction volume has surged by 20%, indicating higher trading frequency, while the average transaction size has grown by 10%, suggesting that investors are executing larger trades. Additionally, social media discussions about JUP have risen by 5%, reflecting growing market interest.

This uptick in engagement signals increasing confidence in Jupiter’s ecosystem as both retail and institutional investors take notice of the buyback’s potential long-term impact.

As the program progresses, the market could see further price appreciation, increased trading volumes, and stronger ecosystem growth. In a recent update, we highlighted that analysts believe JUP could rise as high as $1.4 once it breaches the critical resistance level at $1.05.