The decentralized exchange Jupiter (JUP) on the Solana blockchain has officially commenced its highly anticipated “Jupuary” AirDrop event. Approximately 2 million wallets are eligible to receive a portion of 700 million JUP tokens, valued at around $500 million.
As of January 23rd, data from Dune indicates that 578,657 wallets, representing 61% of the eligible participants, have successfully claimed their allocated tokens, leaving about 39% of wallets yet to participate in the AirDrop.
Market Response to AirDrop
Recent data shows that JUP’s price has declined by 11.29% in the last 24 hours, reaching $0.7849. Over the past week, the token experienced a 3.65% decline, bringing its market capitalization to $1.86 billion. Despite the price drop, trading volume remains high, reaching $816 million in the last 24 hours.
The decrease in JUP’s price is attributed to an increase in sell-offs following the AirDrop distribution, with recipients potentially cashing out their tokens. However, the AirDrop has also enhanced liquidity and trading activity, which could contribute to market stabilization in the coming days.
Changes in Trading Behavior
Data from Coinalyze indicates a period of high volatility on January 18th, with significant liquidation events. Long liquidations surpassed 1.2 million, closely followed by short liquidations exceeding 800,000, indicating intense trading activity likely driven by price fluctuations or speculative trading.
Since January 19th, liquidation activities have decreased, with a net liquidation dominance of -1,837 short contracts. This reduction suggests a decline in leveraged trading, as traders exercise caution to avoid further market instabilities.
Recovery Indicators
On January 23rd, Jupiter’s Open Interest experienced an 8.63% increase within 24 hours, reaching 122.923 million. This uptick signals a gradual recovery post the volatility observed earlier in January, indicating some stability despite ongoing sell-offs.
Additionally, Jupiter Exchange’s Total Value Locked (TVL) on Solana has seen steady growth, reaching $2.85 billion by January 23rd from $2.5 billion earlier in the month. The rise in TVL is attributed to increased user engagement driven by the AirDrop event.
As the market closely watches JUP’s price recovery post AirDrop, ongoing liquidation and trading patterns will serve as critical indicators for assessing the token’s future performance.