Solana's Historic Jupiter Airdrop Concludes with High Claimant Turnout, Yet Over 300,000 Miss Out

The $JUP airdrop by Jupiter, a leading Decentralized Exchange (DEX) aggregator on Solana, has successfully concluded. Launched on January 31st, 2024, it was the largest airdrop in Solana's history. 

The airdrop aimed to distribute 1 billion $JUP tokens to 955,000 wallets that had previously interacted with Jupiter. The claim deadline was set for July 31st, 2024. while a substantial number of users participated, over 300,000 eligible addresses failed to claim their tokens.

Airdrop Participation Meets Expectations, but High Sell-Off Rate Observed

According to Dune dashboard data, 639,109 addresses claimed the airdrop, representing 66.9% of the total eligible addresses. This participation rate aligns with similar airdrop events, suggesting a moderate level of engagement within the Jupiter community.

However, a significant portion of claimants appear to have sold their tokens shortly after claiming, as only 9.5% of airdrop recipients, or 60,697 addresses, continue to hold their JUP tokens. 

Data by Dune

This figure may be higher if JUP tokens locked in DeFi apps are considered, but the high sell-off rate raises questions about the long-term commitment of some participants to the Jupiter ecosystem.

Token Price Resilience Amidst Selling Pressure

Despite initial selling pressure from airdrop claimants, which kept the JUP price within a $0.47 to $0.65 range, the token demonstrated resilience. This stability was followed by a price discovery phase triggered by the introduction of Active Staking Rewards (ASR), designed to incentivize JUP holders to participate in governance. The ASR mechanism led to a surge in JUP's value, reaching an all-time high of $1.70 before consolidating around the $0.8 to $1.05 range. 

Jupiter's Future Plans: Airdrop 2025 and Token Burn

Jupiter has announced plans for another airdrop in 2025 as part of its ongoing Jupuary initiative to distribute tokens to the community. While the criteria and allocation for the next airdrop have yet to be announced, Jupiter has revealed a proposal to burn 30% of the total $JUP supply, amounting to 3 billion tokens worth over $3 billion at the current price of $1.05 per JUP. This reduction will be deducted from the team allocation and will also lead to a 30% decrease in future Jupuary emissions. 

For example, the next Jupuary in January 2025 is expected to distribute approximately 700 million JUP tokens, down from the 1 billion distributed in the previous airdrop. This move aims to create deflationary pressure and potentially increase the value of the remaining tokens.

The $JUP airdrop, the largest airdrop in Solana's history, has concluded with a huge success. While the high claimant participation and and substantial sell-off rate following the airdrop were expected, the next round of airdrop raises questions about sustainability and the long-term impact on the Jupiter ecosystem. Jupiter's future plans, including the next airdrop and the token burn proposal, will play a crucial role in shaping the platform's trajectory and the value of its JUP token.