Jito initiates nearly 200 million dollars JTO airdrop, Solana ecology brews the fight for a comeback

Jito Launches $200 Million JTO Airdrop, Fueling the Solana Ecosystem's Resurgence

Jito is the fourth Solana DeFi protocol to announce a Airdrop this year, following Pyth, Jupiter, and Meteora.

Jito opened its Airdrop to users at 11 am Eastern Time on Thursday, distributing 90 million JTO governance tokens (10% of the total supply) – at the time of writing, these tokens are worth over 2 billion USD.

Overall, Jito’s team is following the traditional path of airdropping governance tokens to users of emerging protocols.

Jito distributes tokens based on the quantity of JitoSOL tokens held and lent to DeFi protocols by addresses, while also rewarding validators and MEV searchers. Undistributed tokens will go into a treasury controlled by Jito’s decentralized autonomous organization (DAO), and the JTO tokens will be used to govern the DAO and treasury.

• Sui Blockchain Bridges USDC Liquidity Like No Other!
• LianGuaiWeb3.0 Daily | Bitcoin ETF applicant in discussions with US SEC enters critical technical details
• NFT News with a Twist: From Michael Jackson’s Blockchain Debut to Web3 Gaming Predictions

Jito allows users to stake their Solana (SOL) to receive JitoSOL tokens from the protocol, which can then be traded or used as collateral – similar to how Lido allows staking Ethereum for stETH.

According to DeFiLlama, Jito and Marinade are the largest liquidity providers for staking on Solana, with respective Total Value Locked (TVL) of approximately $425 million (Lido, the leader in the Lido track, has a TVL of $21.45 billion).

Blockworks research analyst Dan Smith wrote on X: Today, 9,852 addresses received between $9,800 and $208,000 from the Jito Airdrop. To qualify for the Airdrop, all you had to do was invest $40 on-chain, and a few months later, you received $9,882. It feels like “crypto market, it’s back again.”

Wallet owners have 18 months to claim the JTO Airdrop. Ryan West, a research analyst at Blockworks Research, said this will allow users to defer their claiming and associated tax obligations until 2024.

Although the claiming window is long, according to the Flipside Crypto dashboard, 60% or 54 million out of 90 million new tokens were claimed within 4 hours of the Airdrop, and at the time of writing, the claimed percentage is 62.36%.

JTO, the giant whale, seems to be in no hurry to sell after the airdrop. According to the same dashboard, only 3 of the top 20 recipients have sold JTO tokens.

Airdrop Drives Solana Ecosystem Recovery

Blue-chip DeFi protocol Uniswap airdropped 150 million UNI governance tokens to users in September 2020, which, at today’s prices, is valued at over $900 million. Most of the UNI airdrop recipients eventually sold their tokens, but the massive wealth effect still drove the development of Uniswap. Ryan Watkins of Syncracy Capital compared the UNI airdrop to a “stimulus check” at the time.

The JTO airdrop is also seen as a potential catalyst for the recent recovery of the Solana ecosystem. SOL has slowly emerged from the shadow associated with FTX, and its price has quadrupled over the past year.

The Solana NFT market has shown positive signs, with the decentralized exchange registering a trading volume of $7.3 billion in November, making it the busiest month so far.

Zano Shermani, Chief Technology Officer of Jito Labs, tweeted on Thursday on Twitter SLianGuaice that airdrops help drive Solana’s growth. He stated that the new generation of projects has learned from their predecessors, alluding to the “terrible tokenomics” assets launched during the mid-to-late 2021 Solana bull market.

Steven, the Director of Research at The Block, wrote on the X platform: “Back then, Compound and Uniswap airdrops kicked off the DeFi summer, introducing a lot of liquidity to a hungry market and encouraging dozens of projects to follow suit. I think JTO is doing the same thing today. If Solana is smart, they will immediately start paying attention and leveraging this effect.”

Cryptocurrencies Benefit

Coinbase, Binance, MEXC, and other centralized exchanges have listed JTO for trading. According to coingecko data, the fully diluted valuation of JTO exceeds $2 billion, temporarily surpassing Lido, the leading Ethereum liquidity staking project.

JTO’s launch coincides with the continued surge of cryptocurrencies this year. Solana’s native token (SOL) has risen over 550% year-to-date. Polygon (MATIC) and Chainlink (LINK) saw increases last month and continue to maintain around 16% gains on Thursday.

Bitcoin (BTC) retreated to around $43,100 on Thursday after breaking through $44,000 earlier this week. On the other hand, Ethereum (ETH) continued its upward trend on Thursday, rising an additional 4.2% in the past 24 hours.

Cryptocurrency research firm Kaiko’s analysts have found that the market share of altcoins in the total cryptocurrency trading volume soared to 67% last week, reaching its highest level since March 2022.

Kaiko analysts added, “In early November, the daily trading volume of altcoins surpassed $20 billion for the first time since April 2023. While altcoin trading volume continues to be driven by offshore markets, Binance’s influence has declined, with its market share in the global altcoin trading volume falling to 46% last week, down from 60% in September 2022.”

Not only native cryptocurrency traders are interested in altcoins. According to research by cryptocurrency investment company Fineqia, assets under management (AUM) of exchange-traded products (ETPs) holding Solana increased by 99% last month.

Fineqia analysts added, “Following 172% growth recorded in October, ETPs with SOL as the underlying asset have grown by 443% in the past two months, accounting for 77% of the growth in the index assets of altcoins.”

Author: LianGuaiBitpushNews Mary Liu

---

For more information, please join:

Twitter:https://twitter.com/BitpushNewsCN

LianGuai Discord community:https://discord.com/invite/QSvv7MZ2tz

LianGuai TG communication group:https://t.me/BitPushCommunity

LianGuai TG subscription:https://t.me/bitpush

This article is from LianGuai:https://www.bitpush.news/articles/5627958, please indicate the source when reposting the article.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!