Jupiter Crypto News: Market Depth for Meme Tokens Added

Jupiter Crypto News: Risky Meme Tokens Get Market Depth

Jupiter crypto , a popular decentralized exchange (DEX) aggregator on the Solana blockchain, is working on a new feature to address the volatility of meme tokens. Meme tokens, known for their thin liquidity, often experience rapid price pumps and crashes due to their shallow liquidity pools. The founder of Jupiter, known as @weremeow, has announced plans to introduce a liquidity depth metric to help users assess the risk associated with these tokens.

The Risks of Low Liquidity in Meme Tokens

Meme tokens, especially on the Solana blockchain, are notorious for their low liquidity. This allows projects to pump the token price with minimal effort, attracting new buyers only to see the price crash shortly after. Often, even small sell orders can lead to a significant price drop. This new liquidity depth metric will act as a warning for traders, helping them avoid tokens that might not have the liquidity to absorb substantial sales.

Currently, meme token tools have metrics for volatility but lack a direct measure of how well a token can handle large sell orders. With the upcoming feature, Jupiter aims to fill this gap and provide better insights for traders looking to invest in meme tokens.

Jupiter's Role in the Solana Ecosystem

Jupiter DEX has become a major hub for trading on Solana, with significant traffic coming from platforms like Raydium and Orca. The DEX is known for offering the best pricing and routing for trades, with the bulk of transactions under $100, targeting the low-cost, high-risk nature of meme tokens.

In the past few months, meme tokens and low-cap tokens have surpassed even Solana’s native token in trading volumes, especially during the trading boom in July and August. However, the liquidity disparity remains a challenge, as tokens with as little as $6K in liquidity can see daily trading volumes as high as $7.4M.

Jupiter Airdrop and Token Updates

In addition to the liquidity depth metric, Jupiter is also considering another JUP token airdrop. After a recent vote on 230M unclaimed JUP tokens from a previous airdrop, there’s a possibility these tokens will be redistributed through Active Staking Rewards (ASR) or another ecosystem initiative.

The Jupiter DAO recently voted to reduce the total JUP token supply by 30%, which could increase the token's value for holders. With more than 355M tokens currently staked, the project aims to maintain a fair distribution of rewards between the team and the community, ensuring long-term stability for the JUP token and its users.

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