Jupiter, the leading decentralized exchange (DEX) aggregator on the Solana network, is now capturing up to 80% of the network’s priority fees through its validator, JupSOL. This move aims to enhance Jupiter’s competitiveness and expand its selection of trades on the Solana blockchain.
Over recent months, Jupiter has significantly increased its influence on the Solana network. As trading activity on Jupiter grows, the DEX aggregator has seen a marked rise in priority fees. JupSOL has now surpassed Jito in attracting more SOL fees, which translates into better rewards for delegating SOL to JupSOL.
Currently, Jupiter accounts for as much as 80% of Solana’s priority fees, a sharp increase from the 50% share it held in May. The JupSOL validator supports the efficient operation of the Jupiter DEX aggregator and invites staking of SOL, offering increased earnings based on DEX activity.
The JupSOL priority fees are closely tied to the activity on Jupiter. However, priority rates for Solana DeFi protocols fluctuate, partly due to the high rate of failed transfers on the Jupiter DEX. At times, up to 90% of Jupiter DEX transactions fail, which has led to the necessity of paying priority fees to ensure transaction inclusion in a block.
Since May, Solana validators receive 100% of all priority fees without sharing, intensifying competition for staking SOL and receiving fees. Although JupSOL remains a relatively small validator focused on supporting the Jupiter project, it continues to play a crucial role in the Solana ecosystem.
Jupiter currently aggregates about $543 million in value and is the sixth most active chain on Solana. Despite being behind Raydium’s $1.9 billion in value, Jupiter has grown its value locked by 30% in the past month. The platform is essential for aggregating token data and facilitating trades on Solana.
In February, Jupiter introduced its Global Priority Fee upgrade, providing transparent fee estimations across all products. Priority fees ensure transactions are sent to a public pool, though they remain susceptible to attacks from MEV bots. Additionally, Jupiter carries Jito fees, where transactions are sent directly to a validator.
Jupiter is planning to expand beyond its main product by launching a meme token platform, positioning itself as a competitor to Raydium and PumpFun. However, this move has sparked controversy due to a partnership with influencer Irene Zhao, known for previous projects that ended in losses and suspected rug pulls. Despite concerns, Jupiter’s lead developer, @weremeow, assured that Zhao would act as a high-profile tester, with protections in place for investors.
The announcement of the meme launch platform has generated mixed reactions, but it is expected to attract a new user community and offer transparency in token selection, minimizing risk.
Following the news, the native JUP token saw a decline to $0.93 after reaching a one-month high of $1.03. The token remains a popular choice for direct gains and staking opportunities, with early airdrop recipients having until July 23 to claim their tokens from the January airdrop.