- Jito’s token has jumped sharply in the past few days.
- The network’s total value locked (TVL) has jumped to over $477 million.
- The rally is in line with the performance of Solana and its ecosystem.
Jito (JTO) token price is doing well as demand for Solana tokens jumps. The token surged to a high of $3.6 on Friday, much higher than last week’s low of $1.7. It has risen by over 35% from its lowest point this year, giving it a market cap of more than $408 million.
Why is Jito soaring?
Jito is a new platform in the Solana ecosystem. It is a leading platform in the liquid staking industry that enables people to earn returns. According to its website, the users can earn about 6.88% by holding Solana.
The Total Value Staked (TVS) in its ecosystem has jumped sharply in the past few days and now stands at over 6.396 million SOL. In dollar terms, it has over $477 million, making it the second-biggest dApp in Solana after Marinade Finance.
Its growing market share is one reason why the JTO token is soaring. The other reason why JTO price is surging is that it is part of the Solana ecosystem, which is outperforming other blockchains.
For example, Solana’s SOL price has jumped by more than 600% from its lowest point in December last year. It was one of the most affected coins following the collapse of FTX and Alameda Research.
Similarly, Orca has become the sixth-biggest decentralized exchange (DEC) while Bonk has evolved into the third-biggest meme coin after Dogecoin and Shiba Inu. Helium price has also soared from $1 to $6.8. Therefore, it seems like there is strong demand for these tokens.
Further, Jito’s airdrop happened last week at a time when most cryptocurrencies were soaring. As such, investors are buying the token hoping that it will become the next big thing in the industry.
Additionally, the Federal Reserve and other central banks have declared victory on inflation and pointed to cuts in 2024. Investors of high-risk assets like Jito and Bonk tend to love a dovish Fed.
Jito price analysis
Turning to the 30-minute chart, we see that the JTO token price has been in a strong bullish trend in the past few days. It has already flipped the key resistance point at $3.34 into a support. This was an important price since it was the highest swing on December 12.
The Average Directional Index (ADX) has pointed upwards and is sitting at 30. Therefore, I suspect that the coin will continue rising as buyers target the key resistance point at $4.41, the highest point last week. This price is more than 25% above the current level.
