Why did the price of JUP go up?

Jupiter (JUP) increased by 1.01% in the last 24 hours, slightly underperforming the overall crypto market, which rose 1.43%. This growth follows a major token burn approval and positive technical indicators.

1. Token Burn Approved (Positive Sign) – 130 million JUP tokens (about 4% of the total supply) were burned to reduce supply and increase scarcity.
2. Market Movement – JUP’s gains reflect a modest recovery across the crypto market.
3. Technical Indicators – The Relative Strength Index (RSI) at 39.62 suggests the token may see short-term relief after being oversold.

In-Depth Analysis

1. Token Burn as a Growth Driver (Positive Impact)

Summary:
On November 6, the Jupiter DAO approved burning 130 million JUP tokens, which is roughly 4% of the total supply. This action, called the "Litterbox Burn," is part of the "Fresh Start" plan aimed at simplifying the token’s economics. Burning tokens reduces the number available, which can help increase the token’s value by making it scarcer. It also reduces selling pressure from the Litterbox Trust’s reserves, showing a commitment to long-term value growth.

Why it matters:
Reducing supply through burning can help counteract the token’s previous 67% drop over the past year. This approach aligns with trends in the Solana decentralized finance (DeFi) space, which often uses deflationary tactics to support token value. The burn received strong community support, with 86% of governance votes in favor, boosting confidence among holders.

What to watch:
Keep an eye on the token supply after the burn and whether the DAO decides to convert future reserves into stablecoins, as suggested in recent proposals.

2. Market-Wide Recovery (Neutral Impact)

Summary:
The overall cryptocurrency market rose by 1.43% in the past day. Bitcoin remains dominant with a 59.08% market share, while altcoins like JUP saw smaller gains. JUP’s 1.01% increase was slightly below the market average but better than many other tokens in the Solana ecosystem.

Why it matters:
JUP’s price increase is partly due to a general positive mood in the crypto market, rather than purely token-specific factors. However, the Fear & Greed Index remains low at 25 out of 100, indicating that investors are still cautious and momentum is fragile.

3. Technical Rebound (Mixed Impact)

Summary:
JUP’s 7-day RSI moved up to 39.62, moving out of oversold territory, which often signals a potential short-term price bounce. The MACD indicator shows weak bearish momentum, and the price briefly tested the 7-day Simple Moving Average (SMA) at $0.367. However, it faces resistance at the 23.6% Fibonacci retracement level of $0.377.

Why it matters:
This technical bounce suggests some renewed buying interest, but JUP remains below important longer-term averages (30-day SMA at $0.377 and 200-day SMA at $0.473). Trading volume increased by 111% to $75.7 million, showing stronger market activity, but sustained follow-through is needed to confirm a trend reversal.

Conclusion

Jupiter’s recent price increase is driven by the token burn’s deflationary effect and a technical rebound amid a cautious market environment. For continued growth, watch for updates on the DAO’s reserve policies and whether JUP can maintain levels above $0.35. A key indicator to watch is whether JUP can close above the 7-day SMA at $0.367, which would signal stronger short-term bullish momentum.

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What could affect the price of JUP?

Jupiter’s price is caught between the effects of token burns that reduce supply and ongoing questions about how useful the token really is.

1. Token Burn Impact – A recent burn of 130 million JUP tokens (about 4% of the total supply) makes the token scarcer but hasn’t boosted the price yet.
2. Lending Protocol Launch – The beta release of Jupiter Lend could increase demand if JUP is used as a main form of collateral.
3. DAO Governance Pause – Pausing community voting until 2026 might upset token holders but could help the team focus on product development.

Deep Dive

1. Token Burn & Scarcity Dynamics (Mixed Impact)

Overview:
On November 6, 2025, Jupiter’s decentralized autonomous organization (DAO) approved burning 130 million JUP tokens, which is about 4% of the total supply. This burn was done through the Litterbox Trust and aims to reduce selling pressure and show long-term commitment. The tokens burned came from half of the platform fees that were previously used to buy back tokens.

What this means:
Burning tokens reduces the total supply, which can help prevent inflation and potentially support the price. However, after the announcement, JUP’s price stayed steady at $0.35 (NullTX). This suggests that investors want to see clearer benefits from holding JUP, like discounts on fees or rewards for staking, before the price moves up.

2. Jupiter Lend & Ecosystem Expansion (Bullish Catalyst)

Overview:
Jupiter Lend, a new lending platform, launched its private beta in August 2025. It offers loans with up to 90% loan-to-value (LTV), meaning borrowers can get loans close to the value of their collateral. The platform plans to integrate tokenized stocks through xStocks and use JUP as a key collateral asset.

What this means:
If JUP becomes a popular collateral option, demand for the token could increase, especially as Solana’s decentralized finance (DeFi) market grows (total value locked at $11.4 billion as of October 2025). The success of Jupiter Lend will depend on how well it competes with other platforms like Kamino Finance.

3. Governance Pause & Centralization Risks (Bearish Risk)

Overview:
Jupiter’s DAO has paused all voting until 2026, which means the core team is making decisions without community input. Some critics say this move reduces decentralization, a key principle in blockchain projects, but it might help speed up product development.

What this means:
This pause could disappoint holders who value having a say in the project, especially since JUP’s price has dropped 67% over the past year. On the other hand, focusing decision-making might help the team deliver important updates, like the JupUSD stablecoin, which could help the ecosystem grow.

Conclusion

Jupiter’s future depends on balancing token supply management (like burns and staking rewards) with real-world uses in lending and trading. Keep an eye on the public launch of Jupiter Lend and whether Solana’s DeFi market growth can outweigh concerns about governance. The big question: Can JUP evolve from just a governance token into a token that generates revenue through fees or demand as collateral?

What are people saying about JUP?

Jupiter’s community is actively discussing upcoming token unlocks and its plans in decentralized finance (DeFi), while keeping an eye on Solana’s recent growth. Here’s what’s trending:

1. Positive buzz around Jupiter Lend’s high loan-to-value (LTV) loans
2. Concerns about $32 million worth of tokens being unlocked and a pause in DAO governance
3. Traders debating key price levels at $0.51 support and $0.63 resistance

Deep Dive

1. @JupiterExchange: Lending Protocol Sparks Optimism

“Jupiter Lend’s private beta offers loans with up to 95% LTV, and half of the fees go toward buying back JUP tokens.”
– @JupiterExchange (600K followers · 1.1M impressions · 2025-08-09 12:07 UTC)
View original post
What this means: This is good news for JUP holders. High-LTV loans allow users to borrow more against their assets, which could attract more traders and increase revenue for Jupiter Lend. This, in turn, supports buying back JUP tokens, potentially raising their value. However, success depends on how well Jupiter competes with Kamino Finance, which currently leads with $2.67 billion in total value locked (TVL).

2. @ali_charts: Token Unlock Tests Market Resilience

“53.47 million JUP tokens (worth $32 million) were released into circulation on July 28 – the market absorbed this without a price crash, but ongoing Active Staking Rewards (ASR) could increase token supply.”
– @ali_charts (Source: CCN · 2025-07-28 13:47 UTC)
View analysis
What this means: This is a potential downside risk. Instead of burning (destroying) unclaimed tokens, Jupiter recycles 215 million tokens through staking rewards, which could dilute the value for current holders unless Jupiter Lend’s revenue growth compensates for it.

3. @JupiterExchange: DAO Governance Pause Sparks Debate

“DAO voting has been paused until 2026 to focus on launching new products, temporarily centralizing decision-making.”
– Reddit/Telegram sentiment (Source: CoinMarketCap Community · 2025-07-31 19:30 UTC)
View discussion
What this means: Opinions are mixed. Pausing governance voting reduces conflicts that might lead to selling pressure, but it also weakens the project’s decentralization—a core principle of DeFi that many users value.

Conclusion

The outlook for JUP is mixed. On one hand, Solana’s DeFi ecosystem is growing strongly (+23% month-over-month TVL to $12 billion), and Jupiter Lend’s high-LTV loans along with Solana’s position as the 7th-largest blockchain validator add optimism. On the other hand, token unlocks and governance pauses create uncertainty. Keep an eye on the JUP/USDC borrowing rate on JLP Loans—if demand stays above 14.5% annual percentage yield (APY), it would indicate strong confidence in Jupiter’s utility beyond just speculation.

What is the latest news about JUP?

Jupiter is strengthening its token economy by burning a large number of tokens and adding new tools for decentralized finance (DeFi). Here’s the latest update:

1. Litterbox Burn Approved (November 6, 2025) – 130 million JUP tokens were permanently removed to increase scarcity and improve governance transparency.
2. Eco Hedge Tokens Launch (November 5, 2025) – New tokens focused on economic education were introduced on Jupiter’s decentralized exchange (DEX).

Deep Dive

1. Litterbox Burn Approved (November 6, 2025)

Overview:
The Jupiter DAO (Decentralized Autonomous Organization) decided to burn 130 million JUP tokens, which is about 4% of the tokens currently in circulation. These tokens came from the Litterbox Trust reserves. This action is part of the “Fresh Start” plan to simplify how the token works and to ease concerns about future token releases from reserves. Burning tokens means permanently removing them from circulation, which reduces supply and can help increase value. The DAO is also moving its reserves into more stable assets.

What this means:
This is generally positive for JUP because it shows the community is actively managing the token supply and reducing the risk of sudden sell-offs from reserve tokens being unlocked. However, the market’s reaction was mild, with only a 0.6% price increase after the announcement. This suggests investors may have already expected the burn or are waiting for more developments to drive demand (NullTX).

2. Eco Hedge Tokens Launch (November 5, 2025)

Overview:
Jupiter’s decentralized exchange introduced three new tokens: FIATXGLD, FIATXAG, and FIATXCRASH. These tokens have a unique feature—they reduce their supply based on real-world economic data, such as gold prices or stock market performance. The goal is to combine trading with learning about the economy.

What this means:
This development is neutral for JUP itself. While it broadens Jupiter’s product lineup and might attract new users interested in economic education, these tokens are experimental and currently have low trading volume. Their success depends on reliable data feeds from Chainlink oracles and ongoing user interest (Crypto.News).

Conclusion

Jupiter is working to reduce token supply while experimenting with new, niche products. This shows a focus on improving governance and growing the ecosystem. The big question is whether shifting reserves into stable assets will help keep JUP’s price steady during uncertain market conditions.

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What is expected in the development of JUP?

Jupiter’s roadmap is focused on growing its decentralized finance (DeFi) features, improving security within its ecosystem, and refining its token economics.

1. JupUSD Stablecoin Launch (Q4 2025) – A new stablecoin on the Solana blockchain, backed by treasury assets.
2. Jupiter Lend Full Launch (2026) – A lending platform offering high loan-to-value (LTV) ratios, integrated with Jupiter Liquidity Pools (JLP).
3. Jupuary Annual Airdrop (January 2026) – Distribution of 700 million JUP tokens to active users.
4. 130 Million JUP Token Burn (November 2025) – Reducing token supply using reserves from the Litterbox Trust.
5. Desktop Wallet Release (Q1 2026) – A unified app for accessing DeFi services on desktop.

Deep Dive

1. JupUSD Stablecoin Launch (Q4 2025)

Overview: Jupiter is creating JupUSD, a stablecoin native to the Solana blockchain. It will be backed by assets managed by Ethana Labs, including USDtb (which is linked to BlackRock’s BUIDL fund) and later USDe for generating yield. This stablecoin will be a key asset for Jupiter’s lending, borrowing, and perpetual trading markets.

What this means: This is positive for JUP because JupUSD’s integration could increase demand for Jupiter’s liquidity pools like JLP, strengthening its role as a major DeFi platform on Solana. However, there is some risk due to potential regulatory scrutiny of stablecoins backed by reserves.

2. Jupiter Lend Full Launch (2026)

Overview: After a private beta in August 2025, Jupiter Lend will offer loans with up to 90% loan-to-value ratios, which is higher than many other DeFi platforms. It uses JLP tokens as collateral, and these tokens are burned if loans are liquidated to reduce systemic risk.

What this means: This is neutral for JUP. While lending adds value to JLP tokens, success depends on how well it competes with other platforms like Kamino Finance. Burning tokens during liquidation could help stabilize JLP’s price.

3. Jupuary Annual Airdrop (January 2026)

Overview: Jupiter will distribute 700 million JUP tokens to active users, including traders, stakers, and governance participants. Eligibility is based on trading volume, staking time, and community involvement.

What this means: This is positive in the short term because it generates excitement among retail users. However, it could put downward pressure on prices if too many tokens flood the market. Previous airdrops, like the one in January 2025, caused a 33% price increase before the event but led to volatility afterward.

4. 130 Million JUP Token Burn (November 2025)

Overview: The community approved burning 4% of the circulating JUP supply, taken from the Litterbox Trust reserves. These reserves come from half of the protocol’s revenue. This move addresses concerns about tokenomics transparency.

What this means: This is positive for the long term because reducing supply can create scarcity, potentially increasing token value. However, the impact might be limited if overall market sentiment remains cautious.

5. Desktop Wallet Release (Q1 2026)

Overview: Jupiter plans to launch a desktop wallet that users control themselves. It will include features like token swaps, perpetual contracts, and portfolio tracking. The goal is to make DeFi easier to use and compete with wallets like MetaMask on Solana.

What this means: This is neutral. The wallet’s success depends on user experience and competitive fees. If popular, it could increase revenue for Jupiter through built-in services.

Conclusion

Jupiter’s roadmap aims to grow its ecosystem with new products like JupUSD and Jupiter Lend, while also improving tokenomics through burns and airdrops. The stablecoin and desktop wallet could help keep users engaged, and reducing token supply may help counter negative market trends. Since decentralized governance (DAO) is paused until 2026, the core development team carries the responsibility for executing these plans.

Will JupUSD’s yield features attract enough users to compete with centralized stablecoins?

What updates are there in the JUP code base?

In 2025, Jupiter (JUP) made significant improvements to its technology, focusing on making the platform faster, safer, and more reliable for users.

1. API Overhaul (June 2025) – Introduced new API endpoints with better error detection and different access levels for developers.
2. Dev Tokens Tab (July 2025) – Added a feature to monitor wallet activity and identify potential scam tokens.
3. Token Verification v4 (August 2025) – Implemented stricter rules for verifying tokens, cutting down fake listings by about 40%.

Deep Dive

1. API Overhaul (June 2025)

What happened: Jupiter replaced its older APIs with new V3 versions. Paid users now access the main API at api.jup.ag, while free users have a separate, limited API at lite-api.jup.ag. The update also changed how some API paths and responses work, which means developers need to update their code to keep using the service.

Why it matters: These changes reduce delays and lower infrastructure costs, making the system more reliable—especially for big institutional users. While this is good news for Jupiter (JUP) because it could attract more serious partners, smaller developers might find the transition challenging.
(Source)

2. Dev Tokens Tab (July 2025)

What happened: Jupiter Pro added a new tool that tracks tokens created by individual wallets. It looks for suspicious patterns often linked to scams, like unusual bonding curves.

Why it matters: This feature helps protect users by flagging potential scams, which builds trust in the platform. However, it doesn’t directly increase trading activity. Overall, it’s a positive step for user safety.
(Source)

3. Token Verification v4 (August 2025)

What happened: Jupiter tightened the rules for verifying tokens, requiring stricter audits and better liquidity. This led to a 40% drop in fake token listings within the first week.

Why it matters: Safer trading conditions encourage more users to participate and reduce the risk of regulatory issues. This update is a strong positive for Jupiter (JUP), as it helps build a more trustworthy marketplace.
(Source)

Conclusion

Jupiter’s 2025 updates focus on scaling its technology and protecting users, balancing the needs of large institutions and everyday traders. With improved APIs and stronger token verification, Jupiter (JUP) aims to maintain its position as a key liquidity provider on the Solana network, even as competition grows.