The importance of news flow nowadays is significant, especially as BTC breaks new records and altcoins announce major partnerships. These partnerships are set to produce important results in the long term for altcoins. Recently, it was announced that Ethena and Jupiter will collaborate on a new stablecoin that is pivotal for the Solana ecosystem.
Jupiter (JUP) Coin Surge
Following the announcement, the JUP price increased by approximately 5%, surpassing $0.46. The introduction of the new stablecoin by Ethena alongside Jupiter may drive the price even higher in the medium and long term. Ethena Labs and Jupiter will launch JupUSD, a Solana-based stablecoin. The new stablecoin, which is supported by the team behind USDe, will transform the $750 million asset in Jupiter’s Liquidity Provider Pool.
This move aims to break the dominance of USDC on the Solana network and strengthen the Solana ecosystem. Initially, this will be supported by converting 750 million USDC in the liquidity pool to JupUSD.
“As part of the integration, JupUSD will be available as (1) collateral on Jupiter’s decentralized perpetuals exchange; (2) the primary stablecoin for our trading interfaces and Jup Mobile; (3) a key liquidity center at Jupiter Lend; (4) a liquidity pairing token at Jupiter’s significant DEX partner Meteora; and (5) usable in all new products within the Jupiter ecosystem.” – Official Announcement (5 Phases of JupUSD)
The announcement led to a rise in JUP’s price, and the growth of the new stablecoin could support further price increases.