Jupiter Announces JupUSD Stablecoin Launch for Q4 2024
Jupiter, the leading decentralized exchange on Solana, announced Wednesday that it will launch its own stablecoin called JupUSD by the end of 2024. The new stablecoin will be built natively on the Solana blockchain and integrated across Jupiter’s entire ecosystem.
The announcement comes as Jupiter’s native token JUP shows modest gains of less than 1% in the past 24 hours. However, the stablecoin news could potentially drive the token higher in the coming weeks.
Jupiter is developing JupUSD through a strategic partnership with Ethena Labs. The stablecoin will be fully collateralized by Ethena Labs’ USDtb, which is backed by treasury funds including BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL).
According to Jupiter’s announcement, JupUSD will be tightly integrated across the platform’s trading interfaces, perpetuals platform, and lending markets. This integration aims to create a seamless experience within what Jupiter calls the “Jupiverse.”
JUP Token Faces Technical Headwinds Despite Positive News
Despite the promising stablecoin announcement, JUP’s price action remains bearish on shorter timeframes. The token has declined 7% over the past week, currently trading at $0.4367.
Technical indicators suggest sellers maintain control of the JUP/USD pair. The Relative Strength Index sits at 43, below the neutral 50 level. Meanwhile, MACD lines remain in negative territory, confirming the bearish trend.
Price Targets and Support Levels
If JUP can capitalize on the positive ecosystem developments, the token could rally toward the resistance level at $0.477. An extended recovery might push JUP above the $0.50 mark for the first time since September 22.
However, failure to sustain momentum could see JUP retreat to support at $0.41. This level is expected to hold in the near term, with bulls likely positioning for potential gains as the broader cryptocurrency market continues its growth trajectory.
The JupUSD launch represents Jupiter’s latest effort to expand its ecosystem and compete with other major decentralized exchanges. As one of Solana’s most popular trading platforms, Jupiter’s entry into the stablecoin market could significantly impact the network’s DeFi landscape.
