- Jupiter has started its JUP token buyback, acquiring 4.88 million tokens for $3.33 million
- The buyback will use 50% of protocol fees to lower token supply
- The goal is to enhance JUP’s value via supply reduction, aligning with DeFi practices
Jupiter, a leading decentralized exchange (DEX) aggregator on the Solana blockchain, has officially launched its first buyback of JUP tokens.
This marks a significant step in its strategy to enhance token value and stability.
On February 26, 2025, on-chain data revealed that Jupiter repurchased 4.88 million JUP tokens, valued at $3.33 million, using its designated Jupiter Litterbox address for all transactions.
Jupiter(@JupiterExchange) 已开启针对 $JUP 的首次回购💫
过去 17 小时已以均价 $0.683 回购 4,885,370 枚 JUP，总价值 333 万美金；所有回购交易都是通过 Jupiter: Litterbox 地址在链上进行的，目前回购仍在进行中
回购地址 https://t.co/lKWOX27pQa https://t.co/1nfZ1slLsP pic.twitter.com/xkoElpjIfR
— Ai 姨 (@ai_9684xtpa) February 26, 2025
This initial buyback is the first phase of a broader initiative announced on February 13, 2025. It’s aimed at reducing the circulating supply of JUP tokens and creating consistent buying pressure in the market.
50% of fees collected by Jupiter to be used for the buyback
The buyback program allocates 50% of Jupiter’s protocol fees toward repurchasing JUP tokens. The repurchased tokens are locked for three years, creating a sustained reduction in supply. By doing this, it potentially drives up demand and the token’s market value.
The buyback strategy is underpinned by its robust financial performance in 2024, during which the platform generated $102 million in revenue. Based on this figure, Jupiter will spend approximately $50 million on JUP buybacks throughout 2025. This represents about 2.7% of the token’s current $1.8 billion market capitalization.
This move is designed to lower the number of tokens in circulation, potentially increasing demand and preventing JUP from becoming a “value trap.” This is a term used to describe tokens that fail to retain or grow in value over time.
The cryptocurrency community has welcomed this initiative, viewing it as a net positive for JUP’s long-term prospects.
Notably, the buyback initiative follows a year of impressive revenue growth for Jupiter, driven by its dominance in Solana’s decentralized trading ecosystem. As the top DEX aggregator on Solana, Jupiter facilitates trades across multiple DEXs like Raydium and Orca, ensuring traders receive optimal exchange rates.
Additionally, Jupiter’s Jupiter Perps trading platform has been a key revenue driver. This platform commands over 80% of Solana’s perpetual decentralized exchange market.
In 2024, the platform’s revenue surged from $3 million in January to $21 million in December. Nearly 40% of its annual revenue—$35.86 million—came from high-volume trading periods, including the surge in TRUMP memecoin activity.
DeFi protocols increasingly adopting token value-accrual mechanisms
Jupiter’s buyback program aligns with a broader trend in the decentralized finance (DeFi) space, where protocols are adopting token value-accrual mechanisms to strengthen their ecosystems.
Platforms like Aave and Ethena have implemented similar strategies, using protocol revenues to buy back and burn tokens or distribute value to tokenholders.
While the long-term effects of Jupiter’s initiative remain to be seen, it reflects an industry-wide shift toward prioritizing token utility and stability, ensuring that the interests of token holders and platform growth are closely aligned.