Jupiter is a decentralized exchange (DEX) deployed on the Solana (SOL) ecosystem that aims to replace centralized crypto exchanges with a more streamlined system that prioritizes trader experiences.
This article will take a deeper look into the DEX offering and its native utility token JUP, while analyzing its price prospects for the year.
So, let’s get started.
What is Jupiter (JUP)?
Jupiter is a Solana-based liquidity aggregator that aims to solve issues such as liquidity fragmentation and uneven token distributions that have often curtailed decentralized finance (DeFi) projects.
The way Jupiter works is by pooling liquidity from multiple DEXs to improve trade rates and reduce slippage for users. The project’s developers don’t plan to create a vast DeFi ecosystem with different services, instead, it is focused on being a token swap aggregator that enables users to trade tokens more efficiently via a decentralized protocol.
Keep in mind that Jupiter is one of the largest liquidity aggregators on the Solana blockchain, with trading volumes rivaling that of platforms like Uniswap.
How Does It Work?
Users can access Jupiter either through the Jupiter Station website or the Jupiter app using a Solana wallet. The platform is managed by a collection of Solana-based smart contracts that are responsible for handling wallet connections and token trades.
Jupiter employs five different APIs, including one for real-time token pricing and another for placing limit orders on swaps. The DEX aggregator can also be integrated into other projects deployed on the Solana network.
The DEX comes with a lot of exciting features, such as:
Jupiter’s swap aggregator allows users to trade between a variety of tokens. To make use of the service, find a token at your desired price and then set up a transaction where it is swapped to your preferred token at a reasonable price.
Jupiter users can automate token traders using the limit order facility. Users can set a price at which they want to buy a token and the order is automatically fulfilled when the asset reaches that rate. This way users won’t miss out on when their desired token reaches an affordable price.
Dollar-cost averaging (DCA) is a mechanism by which users can set up trades to occur at regular intervals over a specified period. It essentially allows them to buy and sell large amounts of crypto without being affected by market fluctuations.
Jupiter users can swap tokens between different blockchains, meaning they can transfer the assets easily from one network to another. This feature is especially useful for developers working with Jupiter.
Jupiter’s perpetual exchange is available to users on Solana. The DEX transfers tokens from liquidity pools to the trader, which is very useful for maintaining market stability. Jupiter offers up to 100 times leverage for interested traders.
What is the JUP Airdrop and Who is Eligible?
JUP is the governance token of the Jupiter ecosystem. The token was only released very recently and the DEX will be conducting a community airdrop on January 31, 2024.
According to its developers, JUP will be distributed to users who have participated in the community in some or the other way. At launch, anyone with an account on Jupiter will receive 200 JUP.
Users who have had at least $10 worth of crypto deposited on the platform, or made at least 10 transactions on Jupiter before March 2022, will receive an additional 500 JUP in the airdrop.
To claim the tokens, simply visit the Jupiter airdrop portal, log in with your Solana wallet, and the community will determine how many free JUP tokens you are eligible for.
The governance token of the Jupiter DEX is still under distribution and a majority of these tokens are currently under a locking period.
There will be a total supply of 3 billion JUP once the airdrop is completed, out of which, 1 billion JUP will be in circulation. The Jupiter DAO has allocated 40% of JUP supply for community growth, another 40% for the Jupiter team and its strategic reserve, and 20% for the sale of locked tokens through various exchanges.
Jupiter (JUP) Price Prediction For 2024
For 2024, experts predict JUP to have an upturn towards $0.01041, with a maximum expected valuation of $0.0144 before 2025. However, on the downside, JUP could also stoop to a low of $0.002794 by December 2024.
Is JUP a Good Investment?
Jupiter is one of the most popular decentralized exchanges on Solana and has been attracting a lot of attention lately. The platform has also been used as a launchpad by various Solana-based crypto projects to release their tokens, like WEX and BONK.
The DEX aggregator platform has a dedicated community that is constantly working on improving the protocol. This is also one of the main reasons for the rising demand for Jupiter’s soon-to-be-launched JUP token.
All things considered, I can say that Jupiter is a credible cryptocurrency trading platform on the Solana blockchain. Investors should note that the JUP token is yet to be released but they can use the platform to conduct token swaps and cross-chain trades.
I would also like to suggest that you do your research before making any investment decision, especially in the case of cryptocurrencies as they are highly volatile. Always remember that you should only put in money that you can afford to lose.