Jupiter Initiates Initial $3.33M Share Repurchase Program

Jupiter has initiated its first buyback of JUP tokens, with blockchain data verifying the repurchase of 4.88 million JUP tokens, amounting to $3.33 million.

On Feb. 26, the buyback was disclosed on X by a renowned on-chain analyst known as AI姨, who identified Jupiter's (JUP) Litterbox address, which is used for all buyback transactions. This buyback marks the beginning of Jupiter's broader plan to purchase JUP tokens using 50% of the protocol's fees.

The buyback program, announced on Feb. 13, aims to decrease the number of tokens in circulation by locking up repurchased tokens for three years and creating consistent buying pressure. The cryptocurrency community has embraced the move, viewing it as a positive development that will stimulate demand and prevent JUP from becoming a "value trap."

Jupiter is expected to spend around $50 million on JUP buybacks this year, based on its projected revenue of $102 million in 2024. These buybacks would account for approximately 2.7% of JUP's $1.8 billion market capitalization.

Jupiter has maintained its position as Solana's leading DEX aggregator. The protocol generates fees by routing trades among various DEXs, such as Raydium and Orca, to ensure traders receive the best exchange rates. Over the past year, Jupiter's revenue has significantly increased due to the memecoin trading craze on Solana.

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The Jupiter Perps trading platform, which accounts for over 80% of Solana's perpetual decentralized exchange market, has also contributed significantly to Jupiter's revenue growth. According to on-chain analyst AI姨, revenue surged from $3 million in January to $21 million in December in 2024.

Nearly 40% of Jupiter's total revenue for the year, or $35.86 million, was derived from fees during significant trading periods, including the surge in TRUMP memecoin trading.

Jupiter's buyback initiative aligns with a larger DeFi trend in which protocols like Aave (AAVE) and Ethena (ENA) are implementing token value-accrual methods. While the long-term impact remains to be seen, the buyback initiative demonstrates a growing focus on aligning tokenholder value with protocol growth.

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