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Jupiter Exchange’s $700M Token Airdrop Further Stirs Solana Ecosystem

Over 400,000 users have claimed the airdrop, leaving 40% still up for grabs. Despite the high demand, Solana’s network remained stable, indicating that previous challenges have been effectively addressed.

The Solana ecosystem has just witnessed perhaps its most awaited event: the decentralized Jupiter exchange has rolled out its airdrop. This event marks one of the largest airdrops in cryptocurrency history, with the exchange distributing a staggering $700 million to its users. To date, over 400,000 Solana users have claimed their share, yet approximately 40% of the airdrop tokens remain unclaimed.

The distribution of the airdrop was structured across various tiers, based on user trading volume. Tier 1 users, who had traded over $1 million, received roughly 100,000 JUP tokens, currently valued at $58,000. Meanwhile, Tier 4 users, with a trading volume of more than $1,000, were awarded about 1,000 tokens, worth $580.

While a large part of the current circulating supply of 1.3 billion JUP tokens was airdropped to users, the remainder was sold through Jupiter's LFG launchpad, where the JUP token’s price fluctuated between $0.40 and $0.70. After peaking above $0.70, the token price has corrected and is now trading at around $0.58, with day-one listings on all major exchanges except for Coinbase.

Following the JUP launch, Jupiter Exchange has ascended to the top 100 projects by market capitalization, boasting a market cap of $789 million. Currently, it stands as one of the largest projects within the Solana ecosystem and ranks among the top decentralized applications in the crypto space by fully diluted valuation, comparable to giants like Uniswap.

The exchange’s high initial valuation was anticipated, given its over 6.5 million monthly visits and its position as the top DEX by trading volume in the crypto space, post-JUP launch. However, some believe that the JUP token is overvalued, arguing that its $5.8 billion FDV is unjustifiable, especially when compared to similar DEXs on Solana and Ethereum-based aggregators like 1inch, which trade at much lower valuations.

Prior to the launch, there were concerns about Solana’s ability to handle the high network load expected during the claim period. Nevertheless, Solana maintained 100% uptime, even at peak traffic, indicating that the developers have addressed past issues successfully.

Moreover, Solana has been achieving record transaction volumes in January, continuing a trend of significant growth since October last year. The ecosystem has welcomed an influx of new users, leading to a surge in transactions, which exceeded $1 trillion for January alone. This represents an almost 40% increase in economic activity on the network compared to December.

Looking ahead, the future of JUP and Jupiter Exchange is a topic of much speculation. The founders have expressed their intent to focus on user-centric product development and to enhance the appeal of the LFG launchpad to new projects. However, the utility of the JUP token remains under discussion, with plans to revisit its role once the platform gains further traction.