Jupiter Initiates First JUP Token Buyback: 4.88 Million Tokens Already Repurchased
Jupiter has officially kicked off its first JUP token buyback, with on-chain data confirming that 4.88 million JUP tokens, valued at $3.33 million, have already been repurchased.
The buyback, which took place on Feb. 26, was reported by popular on-chain analyst AI姨, who highlighted Jupiter’s (JUP) Litterbox address used for all buyback transactions. This buyback is part of Jupiter’s larger strategy to repurchase JUP tokens using 50% of protocol fees.
The initiative, announced on Feb. 13, aims to reduce the number of tokens in circulation by locking repurchased tokens for three years and creating consistent buying pressure. The cryptocurrency community has shown support for this move, seeing it as a positive step that will increase demand and prevent JUP from losing its value.
Jupiter plans to spend around $50 million on JUP buybacks this year, based on its $102 million revenue in 2024. These buybacks would account for approximately 2.7% of JUP’s $1.8 billion market capitalization.
Despite this buyback initiative, Jupiter continues to maintain its position as Solana’s top DEX aggregator. The protocol earns fees by routing trades across various DEXs, such as Raydium and Orca, to ensure traders get the best exchange rates. Jupiter’s revenue has seen significant growth, particularly due to the memecoin trading frenzy on Solana.
The Jupiter Perps trading platform, which dominates over 80% of Solana’s perpetual decentralized exchange market, has also played a crucial role in Jupiter’s revenue surge. In 2024, revenue skyrocketed from $3 million in January to $21 million in December, according to on-chain analyst AI姨.
Nearly 40% of Jupiter’s total revenue for the year, amounting to $35.86 million, came from fees during key trading periods, including the surge in TRUMP memecoin trading.
Jupiter’s buyback initiative aligns with a broader DeFi trend where protocols like Aave (AAVE) and Ethena (ENA) are implementing token value-accrual mechanisms. While the long-term impact remains to be seen, the buyback initiative underscores the growing focus on aligning tokenholder value with protocol growth.