Coinbase Announces New Solana Airdrop and Adds Token Support

Coinbase, a leading cryptocurrency exchange, has announced the inclusion of Jito (JTO), a new token on the Solana network, into its trading platform. The integration marks a significant step for the Solana ecosystem, reflecting its growing influence and revival in the crypto market.

Coinbase will initiate support for JTO as an SPL (Solana Program Library) token.

Coinbase Announce Jito Support and Airdrop on Solana Network

Users are advised to transfer JTO tokens exclusively within the Solana network to prevent potential loss of funds. Trading of JTO is set to commence on or after 11 AM ET today, contingent on meeting the required liquidity conditions.

Initially, JTO-USD trading pairs will roll out in phases once the platform secures a sufficient asset supply. However, access to JTO might be restricted in certain jurisdictions despite its general support.

Notably, Coinbase has labeled JTO with an ‘experimental’ tag, suggesting a degree of caution for potential traders.

Simultaneously, the Solana network itself has been showing signs of resurgence. Data from Messari indicates that the weekly active addresses on Solana have returned to levels seen before the FTX collapse.

Solana weekly active addresses. Source: X/@0xallyzach

This growth has stemmed from the development of new infrastructure and tools like compressed NFTs. This has also led to diverse consumer applications on the platform.

Read more: Solana vs. Ethereum: An Ultimate Comparison

Will Solana Be This Year’s Comeback Kid?

Despite these positive trends, the Solana ecosystem still trails behind Ethereum in terms of overall activity. However, the recent spike in DeFi (decentralized finance) activities, partly driven by airdrop announcements, has led to a 47% increase in Solana’s TVL (total value locked) since November. Currently, the TVL stands at $1.19 billion, aligning with pre-FTX collapse figures.

Analyst Ally Zach from Messari points out that new token launches, such as Jito, play a vital role in boosting market caps and exchange TVL, thereby attracting users through the trading potential of these tokens.

However, the Solana ecosystem is not without its challenges. Despite a recovering DeFi sector, it remains 89% below its peak TVL of nearly $10 billion from two years ago.

Solana network total value locked TVL. Source: DefiLlama
Solana network total value locked TVL. Source: DefiLlama

In terms of Solana’s native token, SOL, the market outlook is cautiously optimistic. Following a severe drop after the FTX collapse, SOL has recently seen a 55% increase over the past month, outperforming even Bitcoin. However, analysts anticipate a potential pullback, and the token still stands 76% below its all-time high.

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