Jupiter [JUP] is up more than 15% in the past 24 hours, taking weekly gains to double-digits. Over the past month, Jupiter has surged 48%, while its year-to-date (YTD) gains are past 100%.
Solana lending market grows on Jupiter, but signals are mixed
Jupiter is surging due to the growth in its lending market.
As per DefiLlama, Jupiter flipped Kamino Finance [KMNO] to become Solana’s largest lending market with $1.214 billion in active loans. This was almost half of all capital borrowed on Solana, and it represented a 14% growth over the past 30 days.
Active loans on Kamino Finance accounted for $981 million. This figure was equivalent to a 4.75% decline over the same period.
As a result, the Total Value Locked (TVL) of Jupiter has grown by over $500 million since mid-August.
However, that has fueled mixed trader activity, though buying is dominating. Whales were bullish across all exchanges, but retailers and smart money on OKX were bearish.
On Binance, the Long/Short ratio for retail, whales, and smart money is above 1.43, indicating larger holder positioning. Retailers on Bybit were the most optimistic, with a ratio of 2.19, contrary to those on OKX, at 0.84.
Even Jupiter’s Strategic Reserve, Litterbox, accumulated 208,176 JUP, bringing this month’s total to 1.023 million tokens. The protocol’s total buyback is at 175.35 million, with over 134 million tokens burnt.
Thus, the growth of the lending market and the buying pressure from both market participants and the Jupiter team contributed to the price uptick.
Can Jupiter reclaim the $0.45 zone as support?
On the charts, Jupiter broke out from a sideways range market that traded between $0.3136 and $0.3505. This range consolidation has lasted for about two weeks.
Currently, the Bull Bear Power (BBP) has turned green with its huge bars indicating buyer momentum. This observation puts $0.45 into focus as the next target zone, which could then be flipped into support.
Otherwise, the price may decide to retest the breakout at $0.35, and failure to hold above it would expose $0.3136.
It is worth noting that Jupiter is decoupling from Solana’s price movement, despite its lending dominance on the chain. The Correlation Coefficient with SOL is at -0.27, showing JUP price is rising while Solana is falling.
This lack of synchronization puts the rally at risk, especially as the sentiment of the Solana ecosystem worsens. Thus, growth in the lending market cannot by itself keep the prices of Jupiter surging.
Final Summary
- Jupiter rallied over 15% in the past 24 hours after flipping Kamino Finance to become the largest lending market on Solana.
- JUP broke out from a sideways range, but a lack of synchronization in prices in the Solana ecosystem could cap its uptrend.
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