- Despite the current bear market, Jupiter, a Solana-based DEX, briefly overtook Uniswap in daily trading volume.
- The Wen airdrop and its easy tradeability on Jupiter fueled significant trading activity, contributing over $50 million to the exchange’s volume.
- The upcoming JUP airdrop for Solana users further boosted interest in the platform.
- Despite bearish trends, Solana’s price remained relatively stable and even hinted at potential upward movement.
- While currently under bearish pressure, Uniswap holds the potential for a bullish reversal if it prevents a decline below $5.77
Uniswap used to be the largest decentralized exchange by trading volume, garnering an average of $1 billion in trade volumes at the height of the previous bull run.
However, as it turns out, Jupiter, another decentralized exchange built on top of Solana has just made history.
Over the last 24 hours, Jupiter has beaten Uniswap, by a relatively wide margin, to become the leading decentralized exchange by trading volume.
According to reports, this spike in Jupter’s volume came as a result of several factors, including the $WEN frenzy, an incoming token launch, as well as an interestingly high demand for stablecoins.
Let’s go over what’s happening with Jupiter, Solana and Uniswap.
The Reason For The Season for Jupiter
Over the last few weeks, Wen, a new memecoin that was distributed to holders of the Solana Saga phones in an airdrop, has become one of the most popular memecoins on the market.
The new memecoin can easily be claimed by any Solana user who interacted with Jupiter in the last 6 months
This Wen craze and the scramble to buy these Saga phones was one of the major causes of this spike in trading volume, mostly because Jupiter provides an easy way to buy or sell them.
According to CoinGecko, Wen accounted for more than 17% of the trading volume in the last 24 hours, with a whopping $516 million traded in the last 24 hours, within 6 million visits.
This presents a stark contrast to Uniswap’s V3, which had about 10 million visits and $492 million in trading volume but was still unable to beat Jupiter.
According to CoinGecko, Wen accounted for more than $50 million of the total $480 million trading volume on Jupiter in the last 24 hours, making it the second-most traded pair on the platform, after SOL/USDC.
Jup Prepares For Launch
Another factor that boosted the trading activity on Jupiter was the excitement around the introduction of JUP, the platform’s native coin.
According to reports, qualified Solana users will be getting their share of the JUP tokens via airdrop, according to a snapshot of their balances taken on January 25. Ten percent of the one billion JUP tokens will also be given to the community as part of the airdrop.
Users will also be able to do things like staking, governance and liquidity providing on the JUP platform with the airdropped tokens, with Ousers who take part in the platform’s liquidity mining program set to be rewarded by 1 February.
JUP has not yet been officially listed on any exchange but is already being bought and sold heavily on Aevo.
According to Aevo, these JUP tokens are currently trading at around $0.61 meaning that all 1 billion tokens to be released, will have a market cap of about $600 million for the JUP airdrop.
Per CoinMarketCap data, this puts the cryptocurrency somewhere around the 98th largest cryptocurrency by market cap.
Solana Versus Uniswap
The crypto market is currently in the middle of some bearish dominance at the time of writing.
Solana on the one hand, appears to be doing pretty well in terms of price, according to charts from TradingView. It is currently up by about 11% over the weekly timeframe, despite being down by -0.87% over the last day.
In the charts, Solana appears to have entered a descending triangle after being rejected from the $126 level.
The chart above shows the 4-hour Solana chart, as well as a breakout from the triangle’s upper resistance, around $92.
Considering how Solana is currently attempting to break through $100 at the same time, we’d say that the cryptocurrency could be in for some more consolidation, before a possible break above $100, $126 and then a retest of $150 if it all goes well
Uniswap on the other hand, is bearish on both timeframes. According to data from CoinMarketCap, it is currently down by around -3.45% on the weekly timeframe, and by -1.16% on the daily timeframe.
According to the chart above, Uniswap broke above $5.77 (red horizontal line) around 22 November, in what appears to be a lasting breakout.
However, the bears caught up to the bulls when Uniswap hit $8.26, causing a price plunge, and a retest of the $5.77 zone.
Uniswap’s journey ever since, has been about rebounding off this support and reclaiming $10 and above.
Uniswap currently has a lot of bullish potential. However, things are expected to turn bearish if we see a break below $5.77.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.