Key takeaways:
- Jupiter’s planned airdrop of JUP tokens has led to a spike in new Solana users, with total addresses surpassing 15 million
- Trading volumes on Solana DEXs like Jupiter have hit record highs above $500 million daily amid airdrop hype.
- Solana recently launched a major token extensions upgrade that lets developers customize token functionality for greater smart contract potential.
The hype around an upcoming airdrop on the Solana blockchain has led to a surge in new users and activity on the network.
Jupiter, a decentralized exchange (DEX) built on Solana, recently announced that it will airdrop 4 billion of its native JUP tokens to nearly 1 million wallets that used its platform before November 2nd, 2023. The airdrop, scheduled for end late January, is reported to distribute 40% of Jupiter’s total token supply in one of the largest crypto giveaways ever.
WEN: 31st of Jupuary 10am EST
On the 1st of Jupuary, we outlined the main areas of work as we aim to get to launch. https://t.co/PORf6v5apt
We have been right on schedule executing on all these, and we are happy to share that JUP will launch on 31st of Jupuary, 10am EST.… pic.twitter.com/fIhDg0H1Pu
— meow ? (@weremeow) January 15, 2024
However since the announcement, Solana has seen its number of new addresses created per day, pushing the total number of Solana accounts over 15 million.
The spike in users comes as crypto traders flock to the network to get their hands on free JUP tokens. Jupiter has emerged as a top decentralized exchange on Solana, reporting a nearly %700 surge in monthly transaction volume in early this month. The protocol lets users swap tokens, trade perpetual futures, and mint the SUSD stablecoin.
Additionally, JUP’s price has skyrocketed over 300% from $0.046 to $0.059 since Jupiter announced the airdrop, reflecting high demand.
The frenzy has also boosted overall trading volumes on Solana. According to DeFiLlama, Jupiter saw over $500 million in trading activity in the last 24 hours, which is a new record. The SOL/USDC pair led volumes with $166 million traded.
Jupiter’s volumes have now almost reached the Ethereum DEX Uniswap’s $560 million. Traders are betting the airdrop will further raise Solana’s profile and token prices, similar to the Jito meme coin mania last December that helped double SOL prices.
Solana’s Token Extension Upgrade
The airdrop comes alongside a major Solana protocol upgrade called token extensions, launched January 25th. Token extensions allow developers to customize token behavior by adding features like whitelists, fees, and confidential transactions directly into token design.
Stablecoin issuers like Paxos have already adopted extensions for regulatory compliance. The tools vastly expand the scope of smart contracts on Solana, paving the way for greater institutional adoption down the line.
Despite recent price declines, the flurry of activity proves Solana’s immense momentum going into 2023. With record new users, all-time high volumes, and groundbreaking upgrades, the “Ethereum killer” continues to push blockchain innovation to new heights. Jupiter’s airdrop will likely convert many newcomers into loyalists, furthering Solana’s goal of mass blockchain adoption.
Source: https://coincodex.com/article/37159/airdrop-hype-leads-to-spike-in-new-solana-addresses-jupiter-hits-500-million-trading-volume/