Jupiter has seen an impressive price gain after its airdrop that happened a couple of weeks ago, breaking investors' negative assumption that the price will go down significantly.
The negative narrative around JUP seems to come from the fact that most investors who received airdrops usually sell their token after receiving them to realize their profit.
But with JUP it seems that investors are not selling but buying more with potential plans unfolding alongside the development of Jupiter Exchange.
JUP Price Surge
The price of JUP just surged around 34% in a day, continuing its bullish movement from February, giving investors huge profit, some even without needing an initial capital.
The price increase of JUP happened because a lot of things are unfolding as development continues, one of which is the staking mechanism on most protocols on the Solana ecosystem as well as other chains through the help of bridges.
One key sentiment that pushes the price of JUP upwards is the fact that its launchpad, the LFG launchpad, will soon launch with projects coming along.
With this news, JUP has increased 34% in a day, continuing an upward trend that yields a more than 70% return for investors.
Currently the price is in a correction where investors and traders seem to be taking profit from the sudden price increase.
The price increase seems to be slowing down but this does not hinder the fact that JUP has a lot of potential going forward.
JUP has a strong support at the $0.57 level which will probably not be broken any time soon. With this in mind, the potential of JUP seems to be positive in the long run as its price increase has not even been significant yet, not more than 100%.
Interests Around Jupiter Exchange
The current price increase of JUP is also being supported by the fact that most of the tokens are being locked.
The total value locked of JUP currently stands at around $256.41 Million which is almost a third of the overall market capitalization of JUP.
This means that a third of JUP supply is currently being locked which is why selling pressure is not evident right now.
If the total value locked continues to increase, this might be a sign that investors are interested in the overall Jupiter ecosystem.
Increase in TVL is a sign of two things in the Jupiter ecosystem, which are a sign that more people are interested in earning from it by providing liquidity as well as locking JUP for the sake of contributing to its governance process.
By locking JUP for liquidity, holders are earning passive rewards in the form of APY or APR from the Jupiter exchange itself as well as other decentralized exchanges.
Also, by contributing towards the governance process there is a high possibility of earning airdrops, hence why the current TVL is increasing, because by locking JUP in the governance section, investors might be able to be eligible.
Overall the JUP ecosystem seems to be giving a positive outlook in the future, so if you have some, it's better to join in on the staking and farming fun.
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