Jupiter’s local token, JUP, experienced a dramatic market entry but quickly faced a significant sell-off, resulting in a 63.7% price decline to $0.5859 post-airdrop. Initially, the token’s price surged, tripling in value and reaching a market cap of $1.72 billion.
Despite the initial success, JUP’s value soon corrected by 60%, with trading volumes spiking to $1.3 billion. The airdrop was significant, with a total supply of 10 billion JUP tokens and eligibility extended to holders interacting with Jupiter before a set date.
The distribution plan for the airdrop was to allocate 40% of the total token supply across four rounds, with the first round distributing 10% or 1 billion tokens. Additionally, a 17-year-old reportedly earned $1 million from the airdrop, highlighting the event’s impact.
Network Stability Amidst High Demand
Post-airdrop, the Solana network, which supports Jupiter, experienced congestion, with users reporting difficulties, particularly in the first 30 minutes. Despite these challenges, no major issues were reported, indicating the network’s resilience.
Investors are advised to remain cautious, considering the potential inflationary effects of the airdrop excitement on JUP’s value. A further price drop could, however, present a buying opportunity for those with a long-term perspective.