JUP soars after $700 million airdrop—Solana processes normally

One of the largest airdrops ever to take place on the Solana blockchain appeared to have been executed at scale on January 31st without any major issues, and the chain remained in a normal state. The company that carried out the airdrop was Jupiter, which began distributing JUP worth approximately $700 million (approximately 101.5 billion yen, equivalent to 145 yen to the dollar) to nearly 1 million wallets.
JUP’s price began to rise immediately after its distribution at 10:00 a.m. ET (15:00 UTC). Initially it was around $0.41, but it has risen to $0.72 at the time of writing. JUP’s fully diluted market capitalization exceeded $6 billion (approximately 870 billion yen).
No major problems with Solana.
More important than JUP’s value, it seems, was the performance of the Solana blockchain on which JUP is traded. Watchers told CoinDesk that the Solana network withstood a barrage of JUP-related activity and fended off groups seeking to claim JUP and even quickly trade it on decentralized exchanges (DEXs). There were no major problems.
7Layer, an anonymous operator of Overclock, a validator on the Solana blockchain, said that in the early stages of the airdrop, “surprisingly, there was nothing of note” and that “servers were “It seemed pretty close to normal.”

However, the launch was not without its problems. According to validators discussing the airdrop on the Solana blockchain Discord, some RPC nodes (intermediating wallets and the network) had difficulty keeping up with user demand, especially in the first 30 minutes after the airdrop started. It is said that
“The average end user has the most trouble in the first 30-45 minutes of doing anything,” one validator posted on Discord. “I’m glad the consensus layer held up well, but to be honest, the user experience wasn’t great.”
Multiple airdrops in testing in January
According to the Flipside dashboard created by Marqu, more than 20% of the 1 billion JUP set aside for the January 31st airdrop was claimed in the first hour of launch. Jupiter has allocated an unusually large amount of JUP for distribution to those trading through its routing service, which is responsible for the majority of on-chain swaps on the Solana blockchain.
Because of its size, Jupiter’s developers feared that the airdrop would wreak havoc not only on Solana’s systems, but also on Jupiter’s. One of the anonymous founders (who calls himself Weremeow and claims to be a cat) uses the word “Jupuary”, a combination of Jupiter and January, to hope that the worst will not happen. It has been declared a month of system testing to ensure that the system is tested.
Jupiter is also overseeing two other airdrops this month: mockJUP and WEN. This tested the design of an on-chain liquidity pool and the infrastructure of a new “launchpad” called LFG that Jupiter created to launch tokens. Jupiter gained knowledge from these and launched on January 31st.
For hunters looking for an airdrop to go with the flow, it became an event where they could receive small amounts of free money in quick succession. Even ordinary traders were able to receive tokens worth tens to hundreds of dollars from Jupiter in January. The minimum payment amount on January 31st was 200 JUP, equivalent to about $140 at the time of writing.
“But the real winners will be those with MEV (maximal extractable value) priority pricing,” said George Harrap, co-founder of Step Finance, Solana’s data service. These are the validators who are making money,” he said, referring to the “hundreds of validators” who operate Jito-Solana’s clients. This is a mechanism that allows MEV bots to “tip” validators that involve arbitrage trading.
JITO Foundation contributor Andrew Thurman said shortly after the start of the airdrop when the Meteora launch pool started to gain a foothold, the trading bot known as roobot. He pointed out that he tipped the validator $50,000 to process a huge transaction of 1.56 million JUP at $0.42, totaling $625,000.
At the time of writing, the value of that trade has increased by approximately 69%.
|Translation and editing: Rinan Hayashi |Image: Pexel/Pixabay |Original text: JUP Token Soars After Massive $700M Jupiter Airdrop to Solana Wallets

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