Why did the price of JUP fall?
Jupiter (JUP) dropped 1.31% in the last 24 hours, slightly underperforming the overall crypto market, which fell 1.14%. Three main factors influenced this movement:
- Burn excitement fades – The positive momentum from the approval to burn 130 million JUP tokens slowed down as traders grew more cautious about broader economic risks.
- Technical resistance holds strong – The price hit a key resistance level at $0.386 and was pushed back, signaling ongoing bearish pressure.
- Concerns in Solana’s DeFi space – Recent security breaches and failures in Solana-based projects weighed on tokens connected to that ecosystem, including JUP.
In-Depth Analysis
1. Profit-Taking After Token Burn (Negative Impact)
Summary:
On November 6, the Jupiter DAO approved burning 130 million JUP tokens, about 4% of the tokens currently in circulation, aiming to make the token scarcer and more valuable. Initially, this sparked a 2.4% price increase, but traders soon started selling to lock in profits amid uncertainty in the wider market.
What this means:
- Burning tokens reduces the number of tokens available to sell over time, which can help price in the long run. However, it doesn’t immediately fix weak demand. Trading volume for JUP in the last 24 hours ($48.1 million) is still below its average over the past three months.
- The Fear & Greed Index, a measure of market sentiment, is at 31 out of 100, indicating traders are cautious and favor safer moves despite the token burn.
What to watch:
The DAO’s upcoming vote on whether to convert protocol earnings into stablecoins instead of buying back JUP tokens. This change could reduce natural buying pressure on JUP.
2. Technical Analysis Shows Bearish Signals
Summary:
JUP is facing multiple layers of resistance:
- Current price ($0.351) is below both the 30-day average price ($0.3767) and the 200-day average price ($0.4719).
- The Relative Strength Index (RSI) is at 44.92, which is neutral but trending downward, indicating weakening momentum.
- The price failed to break above the important 50% Fibonacci retracement level at $0.386, a key technical barrier.
What this means:
Sellers are defending the $0.386 level, which has been a critical point since the market drop in October. If the price stays below this level, it could test the 2025 low around $0.319.
3. Stress in Solana’s DeFi Ecosystem (Mixed Effects)
Summary:
Solana’s decentralized finance (DeFi) sector has faced recent challenges:
- A $116 million hack on Balancer on November 7.
- Stream Finance lost $93 million, causing some stablecoins to lose their peg on the same day.
What this means:
- JUP’s price is closely linked to Solana (SOL), with a strong correlation of 0.87 this year. SOL dropped 1.9% in the last 24 hours.
- Despite this, JUP’s Total Value Locked (TVL), a measure of assets held in the protocol, remained steady at $2.64 billion, showing some resilience specific to Jupiter.
Conclusion
Jupiter’s recent price drop is mainly due to traders taking profits after a governance-driven rally, weak technical signals, and fallout from problems in Solana’s DeFi space. While the token burn improves JUP’s long-term outlook, traders are waiting for clearer signs that demand is picking up again.
Key point to watch: Will JUP break above the $0.386 resistance level in the next two days, or will ongoing risks in Solana’s ecosystem cause a deeper decline?
What could affect the price of JUP?
Jupiter is adapting to changes in its token economics while riding the wave of growth in Solana’s decentralized finance (DeFi) space.
- Token Burn (Positive) – 130 million JUP tokens (about 4% of the total supply) were destroyed, making the remaining tokens more scarce.
- Lending & Stablecoin (Mixed) – Jupiter Lend is gaining users, but broader economic risks remain.
- Solana Ecosystem (Positive) – As Solana’s network grows, Jupiter’s usefulness and reach increase.
Deep Dive
1. Token Burn & Governance Reset (Positive Impact)
What happened:
On November 6, 2025, the Jupiter community voted to burn 130 million JUP tokens from the Litterbox Trust. This burn was funded by half of the protocol’s revenue and is part of a “Fresh Start” plan to reduce the number of tokens that could flood the market later (NullTX).
Why it matters:
Burning tokens reduces supply, which can increase the value of the remaining tokens. However, JUP’s price stayed steady around $0.35 after the burn. For prices to rise, Jupiter will need to keep buying back tokens and maintain clear communication through its decentralized autonomous organization (DAO).
2. Product Launches: Jupiter Lend & JupUSD (Mixed Impact)
What’s new:
- Jupiter Lend, launched in August 2025, allows users to borrow up to 90% of their collateral value, tapping into Solana’s $12 billion DeFi market.
- JupUSD is a new stablecoin backed by assets from Ethena’s treasury, designed to improve liquidity (CoinJournal).
Why it matters:
If these products gain traction, they could generate fees that fund more JUP token buybacks. But lending with high leverage can lead to forced sales if the market drops, so success depends on how well Solana’s DeFi ecosystem holds up.
3. Solana’s Growth & Competition (Positive)
Current state:
Solana’s total value locked (TVL) in DeFi reached $13 billion in Q3 2025, with Jupiter handling $142 billion in transaction volume. However, competitors like Kamino Finance, with $2.67 billion TVL, are challenging Jupiter’s leading position in lending (X).
Why it matters:
Jupiter benefits from Solana’s expanding network but must keep innovating to maintain its roughly 42% share of the decentralized exchange (DEX) aggregator market.
Conclusion
Jupiter’s token price faces mixed forces: positive tokenomics and Solana’s growth versus risks from token dilution (23% of tokens staked) and broader economic uncertainty. Key indicators to watch in Q4 include Jupiter Lend’s TVL growth and how stable JupUSD remains.
Will Solana’s DeFi growth outweigh the effects of JUP’s staking dilution?
What are people saying about JUP?
The Jupiter (JUP) community is excited about new decentralized finance (DeFi) products but remains cautious about upcoming token releases and governance issues. Here’s what’s trending:
- Jupiter Lend launch sparks optimism – Loans with 90% loan-to-value (LTV) are boosting confidence.
- Traders watch $0.63 price level closely – Breaking this resistance could lead to the next price rally.
- Concerns about token unlocks persist – Although $32 million worth of tokens were released without a big price drop, worries about dilution remain.
Deep Dive
1. @genius_sirenBSC: Lending protocol drives 18% price jump
"JUP jumped 18% after the launch of Jupiter Lend, benefiting from Solana’s growing DeFi market with loans offering 90% LTV."
– @genius_sirenBSC (81.7K followers · 192M impressions · 2025-05-26 14:42 UTC)
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What this means: This is a positive sign for JUP. The new lending product adds a new way to generate revenue and fits well with Solana’s expanding DeFi ecosystem, which has seen a 23% increase in total value locked (TVL) month-over-month.
2. CoinMarketCap Community: $0.63 resistance is a key price point
"Analysts highlight $0.63 as a crucial level: closing above it could trigger a 20% price increase to $0.76."
– @ali_charts via CMC post (366307452 · 2025-07-31 19:30 UTC)
What this means: The outlook is cautiously optimistic. The price momentum depends on how strong the Solana ecosystem remains and whether buyers step in at this important resistance level.
3. CCN: Token unlocks challenge bullish sentiment
"JUP handled 42% of $32 million unlocked tokens without a price crash, but concerns about dilution continue."
– CCN report (2025-07-28 13:47 UTC)
What this means: There is some bearish pressure. To keep the price stable, staking rewards (currently 14.5% annual percentage yield) and token buybacks need to balance out the impact of new tokens entering the market.
Conclusion
Overall, the sentiment around Jupiter (JUP) is cautiously optimistic. The project benefits from Solana’s strong position in DeFi and Jupiter’s growing product lineup, but challenges like governance pauses and token supply increases keep investors watchful. Keep an eye on the $0.63 resistance level—a clear break above could confirm a bullish trend, while failure to break it might lead to a drop toward the $0.51 support level.
How will JUP’s validator node growth and Q4 revenue perform amid broader market challenges?
What is the latest news about JUP?
Jupiter’s community is creating a supply shortage by burning tokens, while its decentralized exchange (DEX) is trying out new tokens designed to teach economic concepts. Here are the latest updates:
- Token Burn Passes (November 6, 2025) – 130 million JUP tokens (about 4% of the total supply) were destroyed to make the remaining tokens more scarce.
- Economic Tokens Launch (November 5, 2025) – New tokens were introduced that link token supply changes to gold prices and stock market crashes.
Deep Dive
1. Token Burn Passes (November 6, 2025)
Overview:
Jupiter’s decentralized autonomous organization (DAO) approved burning 130 million JUP tokens, worth roughly $45.5 million, from its Litterbox Trust. This trust is a reserve funded by half of the protocol’s fees. The goal of this "Fresh Start" initiative is to simplify how the token works and reduce worries about future selling pressure from tokens that were previously locked up.
What this means:
Burning 4% of the circulating supply is generally positive because it makes the remaining tokens more scarce, which can increase value. This is especially important since JUP’s price has dropped 72% from its peak in 2024. However, after the burn, the price stayed steady at $0.35, indicating that traders are waiting for more clear signs of progress, like changes in governance or new product developments. (NullTX)
2. Economic Tokens Launch (November 5, 2025)
Overview:
Jupiter’s DEX introduced two new tokens: FIATXGLD and FIATXCRASH. These tokens automatically reduce their supply when certain conditions are met, such as gold prices hitting a specific level or the stock market experiencing a crash. This project combines fun internet culture with real-world economic lessons, though trading volume is still low.
What this means:
This development is neutral for JUP’s price. While the idea is creative, the success of these tokens depends on how many people use them and how reliable the data sources (oracles) are. If they become popular, they could increase trading activity on Jupiter’s DEX; if not, they might remain a niche experiment. (Crypto.news)
Conclusion
Jupiter is working to improve its token economy while also experimenting with new decentralized finance (DeFi) ideas. The token burn addresses past concerns about governance and token supply, while the new tokens test innovative uses. The big question is whether JUP can use these changes to hold its price above $0.40 as DeFi activity on Solana picks up again.
What is expected in the development of JUP?
Jupiter is moving forward with several key developments:
- ICO Platform Launch (November 2025) – $JUP stakers get exclusive access to new decentralized token sales.
- JupUSD Stablecoin (Q4 2025) – A Solana-based stablecoin backed by treasury assets.
- Jupnet Testnet (Early Q4 2025) – A network for easy token swaps across different blockchains.
- Governance Restart (2026) – Updating the community voting system after a pause.
- Jupuary Airdrop (January 2026) – Annual token giveaway to active users.
Deep Dive
1. ICO Platform Launch (November 2025)
What’s happening: Jupiter will launch a platform in November 2025 where people who stake $JUP tokens can participate in new decentralized token sales. This helps projects raise funds on Solana and rewards those involved in Jupiter’s governance. The first project is expected to launch this month, with rules to keep things safe (Cryptobriefing).
Why it matters: This could increase demand for $JUP staking, which is good for the token. But there’s some risk if the projects launched aren’t high quality.
2. JupUSD Stablecoin (Q4 2025)
What’s happening: In partnership with Ethena Labs, Jupiter is creating JupUSD, a stablecoin that earns yield and is backed by assets like BlackRock’s BUIDL. After launch, Jupiter plans to convert $750 million from its liquidity pool into JupUSD (CoinJournal).
Why it matters: This could help Jupiter grow in decentralized finance (DeFi). However, competing with well-known stablecoins like USDC might make adoption challenging.
3. Jupnet Testnet (Early Q4 2025)
What’s happening: Jupnet is a new network that will allow users to swap tokens across different blockchains. The public test version is expected soon, helping Jupiter expand beyond just Solana (Jupiter Q2 Report).
Why it matters: If successful, this feature could attract more users by making token swaps easier. But technical challenges or delays could slow progress.
4. Governance Restart (2026)
What’s happening: Jupiter paused its community voting system (DAO) to redesign it. The goal is to fix issues like low voter turnout and too much control by a few people. New voting methods, like delegated or hybrid voting, may be introduced (Cryptonewsland).
Why it matters: Better governance can build trust over time. However, the pause means some decisions might be centralized temporarily, which could concern supporters of decentralization.
5. Jupuary Airdrop (January 2026)
What’s happening: Every January, Jupiter distributes 700 million $JUP tokens to active users, stakers, and contributors. To qualify, users need to be involved in trading, governance, or community activities (KuCoin).
Why it matters: This airdrop can create excitement and reward loyal users. But it might also increase the number of tokens in circulation, which could put downward pressure on prices after the drop.
Conclusion
Jupiter’s roadmap focuses on growing its ecosystem with new tools like the ICO platform, JupUSD stablecoin, and Jupnet cross-chain network, while also improving how the community governs the project. By encouraging staking and enabling token swaps across blockchains, Jupiter aims to become a key player in Solana’s decentralized finance space. Still, challenges remain, especially around launching Jupnet and gaining stablecoin users. Keeping an eye on how these developments unfold will be important to see if Jupiter can strengthen its role beyond just a decentralized exchange aggregator.
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What updates are there in the JUP code base?
Jupiter (JUP) made important updates in mid-2025 to improve security, scalability, and tools for developers.
- API Overhaul (June 2025) – Launched new V3 API endpoints with tiered access and outlier detection.
- Dev Tokens Tab (July 2025) – Added wallet-level tracking to spot potential scam tokens.
- Token Verification v4 (August 2025) – Introduced stricter audits, cutting fake token listings by about 40%.
Deep Dive
1. API Overhaul (June 2025)
Overview: Jupiter retired older APIs and introduced new V3 endpoints that include features like outlier detection and tiered rate limits. Paid users now access the API at api.jup.ag, while free users use lite-api.jup.ag with tighter limits.
The update changed some API paths (for example, replacing /limit/v2 with /trigger/v1) and standardized response formats (like changing tx to transaction). These changes aim to reduce delays and lower infrastructure costs for paid users.
What this means: This is positive for JUP because more reliable APIs can attract bigger, institutional users. However, the complexity of switching to the new system might discourage smaller developers. (Source)
2. Dev Tokens Tab (July 2025)
Overview: Jupiter Pro added a feature that tracks all tokens created by a single wallet and flags suspicious activity, such as unusual bonding curves often linked to scams.
This feature was developed with the #Meteora LPArmy community and checks wallet activity across Jupiter’s platform to identify repeat scammers.
What this means: This update improves user safety but doesn’t directly increase trading volume, so its impact on JUP is neutral. (Source)
3. Token Verification v4 (August 2025)
Overview: The fourth version of token verification introduced stricter audit rules and higher liquidity requirements. In its first week, this helped reduce fake token listings by roughly 40%.
While detailed technical info is limited, the focus is on better vetting projects to keep low-quality tokens off the platform.
What this means: This is good news for JUP because safer trading conditions can encourage more retail users and lower regulatory risks. (Source)
Conclusion
Jupiter’s 2025 updates focus on building a more secure, reliable, and trustworthy platform suitable for institutional users. Although switching to the new APIs may be challenging for some developers, the improvements in fraud prevention and API performance could strengthen Jupiter’s role as Solana’s main liquidity provider.
The key question now: Will developers switch to the V3 APIs before the August 2025 deadline?