Jupiter Considers Ending JUP Buybacks After Spending $70M, Whale Sees $1.15M Long Position Opportunity

Jupiter Exchange, a major Solana-based decentralized exchange (DEX) aggregator, is reconsidering its JUP token buyback strategy. The platform spent over $70 million on buybacks in 2025 but saw limited impact on the token price. JUP currently trades near $0.205, down approximately 89% from its all-time high.

A prominent whale has taken notice of the situation and is considering a long position in JUP. As of January 3, 2026, the whale's position size stands at $1.15 million. This move reflects the investor's belief that the market may react positively to Jupiter's potential shift in strategy.

Jupiter co-founder Siong Ong raised the issue on social media, asking the community if the funds could be better allocated toward user rewards and platform growth. Ong noted that the buyback program had not significantly moved the token price and suggested redirecting resources to incentivize existing and new users.

Why Did This Happen?

Jupiter had committed to using 50% of its protocol fees for JUP buybacks, locking the tokens for three years to reduce supply. Despite this strategy, the token price has remained relatively flat. Ong attributed this to the large number of new tokens being released simultaneously with buybacks.

The decision to evaluate the buyback program comes amid broader discussions about tokenomics and investor sentiment. Many market participants have shifted focus from buybacks to growth strategies, such as user acquisition and ecosystem development.

How Did Markets React?

Market reactions have been mixed. Some community members support the move, believing it could drive long-term value for JUP by expanding the platform's user base. Others warn that ending buybacks could reduce investor confidence, particularly if it leads to a perception of lower value retention.

Jupiter has also reduced its JUP airdrop from 700 million to 200 million tokens to mitigate selling pressure. The new allocation includes 175 million for active users and 25 million for stakers. The final snapshot for the airdrop is set for January 30, 2026.

What Are Analysts Watching Next?

Analysts are closely monitoring how Jupiter's strategy shift affects JUP's price trajectory. The success of the new approach will depend on factors such as user growth, platform adoption, and the effectiveness of new incentives.

The broader DeFi landscape is also watching. Meteora generated $1.25 billion in fees in 2025, surpassing Jupiter and other major platforms. This highlights a trend where users are favoring protocols with strong execution speed, low costs, and robust liquidity.

Jupiter's decision to potentially reallocate funds mirrors a broader industry shift. Projects like Helium (HNT) have also paused buybacks and redirected revenue toward network expansion and user growth. This suggests that the market is increasingly valuing tangible growth metrics over token supply reduction.

Investors are advised to track Jupiter's next steps, particularly any new user incentives or platform upgrades. The whale's long position may serve as a barometer for broader market sentiment. If Jupiter successfully redirects its strategy, the JUP token could see renewed interest from both retail and institutional investors.