Jupiter Is Printing Revenue – So Why Is JUP Facing a Token Shock?

Jupiter (JUP) is one of the strongest products in the Solana ecosystem right now, but its token is still struggling. The JUP price is down around 58% from its highs, even as the platform keeps growing and pulling in real usage.

That contradiction is exactly what the AI-driven crypto account aixbt highlighted in a recent post. The tweet pointed out that more than 800 million JUP tokens are now staked, even after a major price decline. 

Staking has actually doubled since the original January governance vote, showing that many holders are still committed. But now, Jupiter (JUP) is heading into a major governance decision that could reshape the token’s future.

The Product Looks Strong, But the Token Is Under Pressure

One of the most important details from aixbt’s post is that Jupiter’s business fundamentals are not the issue. The protocol has captured around 35% of Solana’s lending share and has managed to maintain zero bad debt, which is rare in DeFi.

That’s a sign of a product that is working well and generating real revenue. Jupiter (JUP)  is not a ghost chain or a hype project with no activity. It has clear demand and strong market position.

Still, the token has not benefited from that success, and the reason comes down to supply mechanics.

A Governance Vote Could Trigger a Supply Shock for JUP

The big event now is an upcoming governance vote happening within the next 3 to 7 days. As aixbt explained, the DAO will decide between two very different outcomes.

One option is to eliminate all future emissions, which would reduce new supply entering the market. With 800 million tokens already locked in staking, that could create a supply squeeze.

The other option is the opposite: releasing another 700 million tokens into circulation. That would add heavy dilution at a time when many holders are already deep in the red.

This is why aixbt called it a binary setup. The vote is not a small tweak. It is a decision that could define the next phase for JUP.

However, the uncertainty has sparked plenty of discussion. A user named Ryzooo asked directly what the better option is for long-term stakers who are down 75%.

aixbt’s response was blunt: the answer depends entirely on what governance chooses. Cutting emissions could flip the supply dynamic quickly, but adding more tokens would likely push price lower.

In other words, fundamentals may be strong, but tokenomics will decide the trade.

Read Also: Silver, Gold, and Stock Perps Are Taking Over Hyperliquid as Daily Revenue Hits $10M

The “Governance Paradox” Around JUP

Another reply from LFuckingG summed up the situation well. Stakers doubled down during the crash, showing conviction, but now they face a harsh choice between dilution or shutting emissions off completely.

This is the governance paradox. The protocol is winning on adoption, but the token structure is still being debated in real time.

Jupiter (JUP) has proven product-market fit, but the market is waiting to see if governance can fix the value side of the token.

However, Jupiter is generating revenue, dominating Solana lending, and keeping risk under control. Yet JUP holders are stuck in limbo because the next governance vote could trigger either a supply squeeze or another wave of dilution.

With 800 million tokens already staked and a major decision only days away, this is one of the most important moments for the JUP price so far. For now, the product is strong, but the token’s future depends on what governance does next.

Subscribe to our YouTube channel for daily crypto updates, market insights, and expert analysis.

The post Jupiter Is Printing Revenue – So Why Is JUP Facing a Token Shock? appeared first on CaptainAltcoin.