$JUP Token Tanks Over 70% Within 24 Hours of Historic Airdrop

Summary:
• Jupiter, the Solana-based DEX aggregator distributed $700 million worth of $JUP token on Wednesday, triggering a rally past Uniswap.

Multiple DeFi protocols within the Solana ecosystem are beginning to conduct airdrops for the community. However, Jupiter has suffered a setback after the market responded to its airdrop with a selloff, leading to a 70% price drop for the JUP token. The token briefly touched $1.2 moments after the airdrop but was trading at $0.58 at the time of writing.

First announced in November 2023, the airdrop had been months in the making and JUP rose steadily in the hours leading to and shortly after the event at 15:00 UTC on Wednesday. The airdrop saw the project distribute roughly $700 million worth of $JUP to 955,000 wallets. The event triggered market action that saw JUP’s 24-hour trading volume reach $1.2 billion, passing Uniswap in the process.

Jupiter’s success and critical role on Solana

Jupiter was built with the express purpose of improving efficiency and speeding up trading on the Solana network’s many decentralised exchanges. It enables users to experience better execution of trades by finding the best pricing and reducing slippage. It does this by integrating liquidity from multiple DEXes operating within the Solana blockchain ecosystem.

While the airdrop might have led JUP price to head south, it underlines Solana’s establishment as a force in the DeFi ecosystem and a formidable opponent to Ethereum. Impressively, Solana maintained 100% uptime during the peak airdrop activity period, signaling that it acted on the lessons learnt from previous reputation-damaging outages. One of the worst incidents was in February 2023, when the Solana Network was down for more than 18 hours, leading panic and doubt among many people in the crypto community.

However, the Solana team seems to have done their homework and SOL had a stellar performance in Q4, rising steadily from $20 at the end of September to touch a year-high $112 on Christmas Day. SOL was trading at $95 at the time of writing. For JUP, Wednesday’s airdrop might have led to a setback, but there’s much to look forward to in the coming days as the market settles after the airdrop.  Furthermore, Jupiter accounts for 70% of all DeFi trading on Solana, pointing to its critical role in Solana’s success. Therefore, the $JUP price action could potentially impact the wider Solana ecosystem in the coming days.