The Solana ecosystem has seen tremendous growth this cycle, and one of its standout protocols is Jito ($JTO), a liquid staking protocol that enables users to stake their Solana (SOL) in exchange for JitoSOL.
This staked token can then be utilized in various decentralized finance (DeFi) activities, further driving innovation within the Solana network.
Currently, Jito boasts a market cap of $350 million, with only 12% of its tokens in circulation.
Over the past six months, Jito has contributed 47% of the total transaction fees collected on the Solana network, highlighting its significant role in generating revenue for the ecosystem.
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Jito’s Growing Impact on Solana
Jito also accounts for 47% of all transaction fees ever generated by the Solana network, underscoring its long-term influence on the blockchain’s revenue.
Net deposits into the protocol have been steadily increasing, indicating rising trust and investment in Jito.
Over the past six months, Jito has generated an average of $1.4 million in fees daily, with both assets under management and generated fees on a positive trend.
Market Sees Higher Valuation for Jito
Jito’s price-to-fee (P/F) ratio, as indicated by the blue line on the chart, surpasses that of Lido (green line), suggesting that market participants value Jito higher per unit of fees generated.
This reflects expectations for faster growth compared to its competitors in the staking space.
Jito’s Efficiency and Growth Potential
Even though Jito holds fewer deposits compared to Lido, it continues to generate significant revenue in fees, showcasing its efficiency and growth potential in the staking market.
The platform’s ability to extract high fees from smaller deposits makes it an attractive option for those looking to invest in the Solana ecosystem.
Price Projections for $JTO
Based on projections from Token Terminal, the price of $JTO could vary significantly depending on the market performance of Solana ($SOL).
In a normal market scenario, $SOL is expected to reach $275, leading $JTO to potentially hit $3.1.
In a bullish case, $SOL could rise to $375, pushing $JTO up to $8.9.
In a bearish scenario, $SOL may drop to $100, bringing $JTO down to $0.67.
Jito’s Price Action: Key Levels to Watch
On the technical front, Jito ($JTO) appears to be forming a base around $2.7 – $2.5, which is a critical support level on the weekly chart.
This area, considered an equilibrium, could provide a strong buying opportunity on a pullback, especially for those who maintain a bullish outlook on the project.
The dynamic EMA on the weekly chart also adds further validation to this potential retest.
As always, this analysis is for educational purposes only and does not serve as financial advice.
data source: Token Terminal, Tradingview, SwissBorg Academy, Akademi Crypto.