Key Points
Jupiter, a perpetual exchange network based on Solana, saw its native token, JUP, rise by over 25%.
This increase was in response to several significant announcements.
At the time of writing, JUP had reached an intraday high of $1.25, after bottoming out at $0.9449 earlier in the day.
This rally positioned JUP as the top gainer, boasting a market cap of over $2.03 billion.
Reasons for JUP’s Increase
The token’s surge was accompanied by multiple green candles in a high-volume trading environment.
This followed the announcement of major ecosystem updates at the exchange’s inaugural event, Catstanbul 2025.
During this event, Jupiter burned 3 billion JUP tokens.
At current prices, these tokens are valued at approximately $3.6 billion.
This burn represents 30% of the total supply.
Meow, the pseudonymous founder of the exchange, also announced plans to use 50% of the platform’s generated fees to buy back JUP tokens.
These tokens will be locked in a long-term reserve.
By reducing the total supply of tokens in circulation, these mechanisms create scarcity, potentially driving up the token’s value as demand increases.
Other announcements that aroused investor interest included expansion plans for Jupnet, Jupiter’s omnichain network.
Jupnet aggregates liquidity across multiple blockchains into a single decentralized ledger.
JUP is expected to play an essential role within Jupnet, thereby enhancing its utility.
The recent JUP rally has also been supported by its growing prominence in the defi sector.
The total volume locked within the protocol has been steadily rising over the past week and has surged over 21% since Jan. 14 to $2.87 billion at press time.
Meanwhile, its defi trading volume has jumped from over $415 million on Jan. 24 to $1.48 billion on Monday, reflecting an uptick in investor interest.
The altcoin has also become the most-bought token by smart money in the last 24 hours.
Data from CoinGlass indicates that demand from derivative traders has also grown over the past couple of days.
Open interest in JUP’s futures market reached its all-time high of $363.92 million yesterday.
On the daily chart, JUP’s price has remained above the 50-day and 200-day moving averages.
The shorter MA is poised to cross over the longer one, which could lead to the formation of a golden cross.
If this crossover is confirmed, it could signal a continuation of the uptrend, with bulls gaining control of the market.
The MACD and price oscillator lines were also pointed upwards when writing.
This indicates that the buying pressure on the altcoin is increasing, which could potentially fuel its ongoing rally.
Based on these indicators, JUP could continue its rally to retest $1.41, its highest point from December last year.
A break above this level could pave the way for a move toward its all-time high of $2, representing a 40% increase from its current price level.
At press time, JUP was exchanging hands at $1.18 per coin.