Ethereum-Based Protocol Temporarily Benefits from $700M Solana Jupiter Airdrop
Summary:
An Ethereum-based protocol, inactive since 2017, reportedly benefited momentarily from a $700 million airdrop by Solana-based exchange aggregator Jupiter due to an identical price ticker. Claims on the airdrop sparked significant activity, and despite a brief spike in Solana's gas fees, the network successfully processed 2.5 million non-vote transactions in the first two and a half hours. The airdrop, however, encountered complaints from users of certain third-party apps, highlighting issues concerning the interface between user wallets and the network. A seventeen-year-old investor reportedly earned over $1 million from the airdrop.
An inactive Ethereum protocol possibly experienced a temporary boost due to a $700 million airdrop by Solana-based exchange aggregator, Jupiter, owing to an identical price ticker. On January 31st, just before Solana's Jupiter commenced its 'JUP' airdrop, a similar Ethereum token surged over 430% before declining dramatically within a few hours. As per CoinMarketCap, the Ethereum's JUP's price jumped from $0.005 on January 30 to $0.026 on January 31, before tumbling down to the present $0.007.
Ethereum-based Jupiter was launched in 2017 for the creation and hosting of decentralized apps (DApps), but it is no longer operative, as stated on its official website. The Solana version of Jupiter, however, is a decentralized exchange aggregator that enables users to swap, place limit orders, and implement dollar-cost averaging buying strategies for tokens on the Solana network. A massive price rise occurred in the Ethereum-based JUP just before the opening of Jupiter's hefty airdrop claims.
The Jupiter airdrop, among the largest in Solana's history, transpired seamlessly, said a Solana Foundation executive. Austin Federa, head of strategy at the Solana Foundation, revealed to Cointelegraph that the Solana network performed admirably, processing over 2.5 million non-vote transactions during the first couple of hours after initiating the Jupiter claims. Although Solana gas fees did see a significant spike at the height of the claiming frenzy, Federa humorously stated that the fees reached an "astronomical" 0.01 SOL, equivalent to around $1.02.
In contrast, Federa mentioned the high gas fees experienced by Ethereum network users during popular airdrops like ApeCoin's launch in March 2022. He said that during the ApeCoin airdrop, people were paying up to $3500 in gas fees for claiming.
Yet, the airdrop event was marked by several complaints from users of third-party apps like Phantom Wallet and Solflare within the initial hour. Federa clarified the issue was RPC nodes, or the interface between user wallets and the network, not Solana's base layer. Federa emphasised that Solana's base layer performed as expected with an increase in user activity.
In related news, a seventeen-year-old crypto investor going by the pseudonym 'notxavierj' reportedly earned more than $1 million from the Solana-based JUP airdrop. As per data from Osk2020 at Dune Analytics, ever since the airdrop went live at 10 am EST on January 31, 41% of all eligible wallets have claimed their JUP tokens, with a total of 566 million JUP, or 57% of the distribution, being claimed. Over 176,000 wallets reportedly claimed their airdrop during the first hour.
Published At
2/1/2024 8:42:43 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.