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Behind this momentum is Jupiter ‘s strategic withdrawal of liquidity from the pool, reducing selling pressure and sparking positive effects. Jupiter hit $0.59 as SOL exceeded $100. Increased trading volume signals growing interest in JUP.
Arkham Intelligence Unveils Trigger Behind JUP’s Price Surge: Liquidity Withdrawal
Nevertheless, there was a specific trigger for the rise in Jupiter’s price, as Arkham Intelligence revealed in a post. According to Arkham, the Jupiter exchange team had withdrawn liquidity from the original JUP pool. At the time the article was published, the team had withdrawn 90 million JUPs from the pool.
The Jupiter team has begun to pull liquidity from the initial JUP pool.
So far, they’ve taken out 90M JUP ($52.2M) and $9.7M USDC.
This JUP represented overhanging sell pressure that has now been returned to Jupiter wallets. pic.twitter.com/x7x51CMsAp
— Arkham (@ArkhamIntel) February 7, 2024
A liquidity pool consists of cryptocurrencies that are locked in a smart contract and enable faster orders and transactions on a decentralized exchange (DEX). In terms of price dynamics, the withdrawal of liquidity from the pool serves to reduce selling pressure on the cryptocurrency, as was the case with JUP.
Market Synergy: Jupiter’s Growth Mirrors Solana’s Momentum
Another reason for the rise of Jupiter could be the rise of Solana. Solana was trading below $100 for a while, but when Jupiter shot up, Solana was trading at $102. Jupiter and Solana are linked in some ways; Jupiter is an exchange built on Solana.
Hype Alert: Social volume rises as Jupiter passes $0.59 milestone
The recent rally has shown how market participants have capitalized on the price movement triggered by the increase in trading volume on the stock exchanges. In the first hours of February 7, the trading volume was $265.95 million. Within a few hours, however, it jumped to $465.12 million, indicating significant buying and selling activity in JUP. In terms of social volume, the data shows an increase in social volume with rising prices. There was a significant increase in social volume when JUP reached $0.59. Social volume reflects the frequency of searches for an asset, with an increase indicating increased interest and discussions around the token. Conversely, a decrease signals a decrease in hype.
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