**Jupiter's Native Token JUP Surges 6% Amid Market Downturn**
Jupiter's native token JUP has experienced a significant surge, gaining 6% in the last 24 hours, despite a broader market decline during the same period. This increase follows an announcement from the Solana-based decentralized exchange regarding the burning of some JUP tokens and the allocation of half of its fees towards repurchasing tokens from the market.
With a notable bullish momentum, JUP is expected to sustain its upward trajectory in the short term.
### Jupiter to Burn $3.6 Billion Worth of JUP Tokens and Introduce Buyback Program
Jupiter recently concluded its inaugural 'Catstanbul 2025' event featuring a keynote speech by its anonymous founder 'Meow,' who unveiled two major initiatives aimed at enhancing the value and utility of JUP.
One initiative involves the burning of 3 billion JUP tokens, valued at around $3.6 billion, with the objective of reducing emissions, enhancing certainty, and lowering the fully diluted valuation (FDV).
Additionally, Meow revealed a buyback program, where 50% of Jupiter's protocol fee revenue will be utilized for repurchasing JUP tokens. These tokens will be stored in a long-term reserve, demonstrating a commitment to stabilizing the token's value over the long term. The remaining 50% of fee revenue will be channeled towards growth strategies and ensuring operational stability of the platform.
### JUP Token Performance and Analysis
Following these announcements, JUP's value surged to a 30-day high of $1.28 on Sunday. The current buying activity has led to an increase in the token's open interest, which currently stands at a multi-month high of $364 million, up by 25% over the past 24 hours.
Open interest serves as an indicator of outstanding derivative contracts, such as futures or options, that have not yet been settled. An increase in open interest during a price upswing signifies heightened market participation and bullish sentiment, indicating the influx of new investments into the JUP market.
Moreover, the optimistic funding rate for JUP, currently at 0.0074%, reflects the rising demand for long positions, as traders holding such positions pay those in short positions. This suggests a strong bullish sentiment in the market and a preference for long positions.
### JUP Price Prediction and Key Levels
Presently, JUP is trading at $0.95. Continued buying pressure could propel the token's price towards $1.08. In case of a further strengthening of the bullish sentiment, JUP might reach $1.22.
Conversely, a market shift towards profit-taking could negate this bullish forecast, causing JUP's price to drop below the support level at $0.95 and potentially decline to $0.81.