Jupiter’s local token JUP made a swift entry into the market on Wednesday, January 31st, but faced significant sell-offs within the last 24 hours following the airdrop. At the time of writing, JUP is trading at $0.5859, marking a 63.7% price drop.
Will Jupiter’s Price Rise Again?
Shortly after the airdrop, the price of JUP soared to $1.27 according to data shared by CMC. Additionally, the initial offerings took place at $0.41. Following the initial surge, JUP’s price quickly tripled, and its market value rose to $1.72 billion during this period.
However, after this rise, JUP’s price experienced a sharp correction of 60%, and trading volumes increased to $1.3 billion. The Airdrop Official X account had recently shared information about the Jupiter token and the upcoming airdrop. The details were as follows:
- The total supply of Jupiter tokens ($JUP) is at an impressive level of 10 billion.
- A significant portion of the 955,000 wallets that interacted with Jupiter before November 2nd are eligible to participate in the airdrop.
- The distribution plan involves strategically allocating 40% of the total token supply over four rounds of airdrops. The first round, which is planned to initiate the distribution, covers 10% of the total supply, equivalent to 1 billion tokens.
On the other hand, according to statements made, a 17-year-old child earned a surprising amount of $1,000,000 following the Jupiter airdrop.
Congestion on Solana Network
According to data provided by 7Layer, no major issues were reported following the initial stage of the airdrop. The statement was as follows:
The server appeared to be quite normal.
Despite this, users reported some difficulties in the first minutes of the airdrop. In discussions on Solana‘s Discord server, it was noted that wallets and RPC nodes, which act as intermediaries for the network, struggled to meet user demands, especially in the first 30 minutes following the start of the airdrop.
In conclusion, upon review, developments in Jupiter’s trading volume could have profound effects on the long-term expectations for Jupiter’s price.
Moreover, investors interested in JUP should be cautious about the risks of potential inflation caused by the excitement surrounding the airdrop.
Due to the resulting inflation, JUP may have become vulnerable to downward pressure. A potential drop in Jupiter’s price to $0.40 could present a buying opportunity for long-term investors.
