The native token for the Solana-based DeFi protocol Jupiter (JUP) fell 13% over the past 24 hours, as weakening on-chain activity and a broader market downturn pressured the asset.
Data from analytics platform Artemis shows a continued decline in user engagement, contributing to the negative sentiment. Daily Active Users on Jupiter have fallen 19% over the past 30 days to 37,800, directly impacting the protocol's revenue generation.
The drop in users has led to a significant fall in platform revenue, with annualized fees, measured on a 30-day average, declining 29% to approximately $332 million. The simultaneous contraction in users and fees points to a fundamental weakening for the protocol, which operates as a key liquidity aggregator on the Solana blockchain.
From a technical perspective, JUP has entered a support zone that has previously triggered rallies, including a 58% price increase on a prior touch. However, momentum indicators remain bearish. The Parabolic SAR indicator is positioned above the price, signaling potential for further downside, while the Money Flow Index has dipped below the 50 mark, indicating that capital outflows are outpacing inflows. While spot market data shows net buying of around $3.43 million, the buying pressure has not been enough to reverse the bearish trend.
This article is for informational purposes only and does not constitute investment advice.
