Jito’s $1 mln JTO buyback fails to lift token after 60% drop: What now?

Key Takeaways

Jito’s new tokenomics update failed to attract bulls in the market. Will ongoing buybacks improve the altcoin’s recovery odds? 

Solana’s [SOL]-based liquid staking protocol, Jito [JTO], has announced revamped tokenomics for its governance token.

In a statement, the project said that it bought back $1 million worth of JTO between 22nd August and 1st September. 

The project added, 

“The CSD will continue using TWAP buybacks near term while developing additional mechanisms, such as an auction system, to automate $JTO value accrual.”

The Jito DAO, the entity running the buyback program, will also receive 6% of all Jito Block Engine fees to accumulate more tokens and reduce the supply, stating that it could benefit tokenholders. 

“The Jito Foundation is committed to ensuring that protocol fees accrue directly to $JTO token holders as optimally as possible.”

Source: X

Market remains muted

Despite the bullish catalysts, the market sentiment remained muted. In fact, the Weighted Sentiment improved slightly but was still red overall. 

Source: Santiment

This meant that traders were still cautious and uncertain about the altcoin, at least as of press time.

However, the bearish sentiment has persisted since July on the Futures market. JTO’s Open Interest (OI) dropped from over $86 million to $51 million in the past few weeks. 

Source: CoinGlass

In other words, speculative interest in the altcoin was too low to spice or fuel recovery. Surprisingly, JTO has not been reacting strongly to bullish updates.

On the 22nd of August, VanEck announced the first JitoSOL ETF, which allows holders to directly accrue stalking yield. But the token only moved about 7% and retraced the gains afterwards. 

The Jito team has been actively engaging with regulators for clarity on liquid staking tokens (LST) for a while. Despite all these, the token has lagged behind and failed to front a strong recovery in 2025. 

Since the last November run, JTO has dropped by 58% from $4.3 to $1.8. 

Can the revamped tokenomics improve recovery odds if broader market sentiment becomes more positive? Well, that remains to be seen. 

Source: Jito/USDT, TradingView

In the meantime, the altcoin could extend its price range between $1.6 and $2.2. Only a strong move above $2.2 could reinforce a higher chance of a sustained recovery.