2 months ago
21
Jupiter’s token (JUP) has surged by an impressive 183% over the past 30 days, even though it is still below its initial price of $2. The cryptocurrency market took a hit of nearly 8% yesterday, with Bitcoin price falling to $65,000 for the first time in over a week. Ethereum price also experienced a drop of almost 10% following their week-long rallies. Despite this temporary market downturn, Jupiter has managed to hold its ground. Jupiter, along with Solana, emerged as top gainers amidst the market’s ups and downs. Its ability to resist bearish market pressure has left investors and enthusiasts questioning the reasons behind its price rally.
Market Performance of Jupiter (JUP) Price
Following the launch of Jupiter’s token, JUP, on January 31, it encountered a substantial decrease in value, which is a common trend observed with many airdropped tokens. Its price dropped to a low of $0.4 as investors capitalized on the opportunity to secure profits and explore alternative projects. Throughout February, the price of JUP fluctuated, trading at an average price of 0.45 until it experienced a significant surge on March 1.
At the time of writing, Jupiter (JUP) Price is $1.49, an increase of 55% since the past day. In only a week, its value has increased by 96%, and by 188% within a month. There is a heightened trading activity regarding the token, demonstrated in the 118% increase in trading volume over the past 24 hours to reach $1.5 billion. With a market cap of 2 billion and a circulating supply of 1.35 billion, JUP is ranked 64th according to CoinMarketCap.
Top Reasons Why Jupiter (JUP) Price is Rising
Various factors contribute to the rise of JUP prices as highlighted below.
1. Introduction of the LFG Launchpad feature
The growth in price is significantly influenced by the dedication of the Jupiter team to improve and broaden the functionalities of the Jupiter ecosystem. The recent introduction of the LFG Launchpad feature has played a crucial role in the successful introduction of highly traded meme coins. Jupiter’s LFG launchpad is unique as it is a community-oriented platform that enables Solana projects to release their tokens with the backing of the community.
In contrast to traditional launchpads that rely on centralized entities for project selection, Jupiter’s method empowers the community to make decisions through a governance vote. This approach guarantees transparency, equity, and inclusivity in the token launch process, cultivating a lively and dynamic ecosystem on the Solana blockchain.
The first LFG vote was a huge success!
Over 180,000 people voted, and all 6 candidates benefitted tremendously from participating.
Before the second round kicks off tonight — The Jupiter Core Working Group wants to collect your feedback on the process
— Slorg (@SlorgoftheSlugs) March 14, 2024
2. Trading Volume
Jupiter’s recent surge in trading volume, which has increased by approximately 127.79% to reach a record $1.2 billion over the last twenty-four hours, has been a key factor in driving its rally. The significant rise in trading volume indicates heightened market activity, with more buyers and sellers participating and contributing to increased liquidity.
The surge in trading volume means that a larger number of $JUP tokens are being exchanged on various platforms. This heightened activity has captured the attention of investors and generated momentum for the cryptocurrency.
The spike in trading volume also reflects a growing demand for JUP tokens, as buyers actively seek to acquire them, resulting in upward price movements. Additionally, the higher volume suggests improved liquidity, making it easier for traders to execute large orders without causing significant price fluctuations. As prices rise, Jupiter becomes more appealing to traders, further boosting trading volume and driving additional price gains in a positive feedback loop.
3. Value-Average feature
Jupiter’s growth is being driven by the introduction of an innovative Value–Average feature, currently in beta. This feature has played a crucial role in attracting users to the platform. It’s a dynamic investment strategy that focuses on maintaining a balanced portfolio growth by adjusting investments based on market movements. When prices go down, the strategy buys more tokens to take advantage of the lower prices. On the other hand, when prices go up, it buys fewer tokens to avoid overcommitting at higher prices.
The main goal is to steadily accumulate assets while minimizing exposure during volatile market swings. By consistently accumulating tokens during market dips, the strategy supports a gradual price increase. Investors appreciate this balanced approach that avoids excessive risk-taking. It aligns with long-term growth, which attracts patient investors. This feature showcases the team’s dedication to sustainable growth. As more users adopt this strategy, it contributes to a positive sentiment and increases the demand for JUP.
Ever heard of buy high, sell low? Common pitfall for the majority of retail traders. Value averaging just introed by @JupiterExchange should help you do the opposite – buy low, sell high (aka the thing we all want)! Great idea and can’t wait to see how it performs over time https://t.co/xTEMCzl9WC
— djsoda (@tjfanta1) March 14, 2024
4. On-chain Data
The on-chain data of the platform shows a steady increase, indicating a rise in investor trust. Jupiter, acting as a swap aggregator, combines liquidity from various DeFi platforms to offer users cost-efficient and effective token swaps. With a Total Value Locked (TVL) exceeding $300 million, Jupiter’s credibility and user base growth are highlighted. The platform briefly overtook Uniswap V3 as the largest DEX before returning to second place. Additionally, Jupiter has facilitated 29.6 billion in total volume and 41.8 million transactions from 1.5 million unique wallets since the beginning of the month.
Conclusion
Jupiter (JUP) has exceeded market expectations, experiencing a remarkable 183% increase in value within the last month. Despite recent market fluctuations, Jupiter’s strong performance and positive outlook have captured the interest of investors. Backed by unique functionalities and an expanding user community, Jupiter’s upward trend indicates the possibility of further expansion in the digital currency market.
The post Reasons Jupiter (JUP) Price is Rising by 86% appeared first on CoinGape.
English (US) ·