ParaFi Capital has made a strategic investment of $35 million in Jupiter, a prominent Solana-based trading and liquidity protocol. This marks the first instance of Jupiter accepting external capital, following years of self-sustained, profitable growth. The investment was executed through market-priced token purchases, with no discounts, and extended lockup periods, fully settled in Jupiter's JupUSD stablecoin.
This financial boost arrives as Jupiter reports over $1 trillion in trading volume within the past year and its expansion into areas like perpetuals, lending, and stablecoins. As part of the deal, ParaFi Capital also received warrants to purchase additional tokens at premium prices, underscoring a commitment to long-term collaboration.
Jupiter's recent innovations include a beta version of an onchain prediction market launched in partnership with Kalshi and the introduction of JupUSD, a Solana-native stablecoin developed with Ethena Labs. CoinGecko data indicates that Jupiter's native token, JUP, has risen by approximately 9% in the last day.
The move aligns with a broader trend of venture capital investments in decentralized protocols. Notably, in October, a16z Crypto invested $50 million in Jito, another Solana-based protocol, while Babylon raised $15 million for its Bitcoin-native staking and lending platform. These investments reflect the growing interest in decentralized finance and related sectors.
Beyond finance, decentralized platforms in other domains are also attracting attention. For instance, Bio Protocol secured $6.9 million for its AI-native biomedical research framework, and Humanity Protocol raised $20 million to advance its blockchain-based identity system.
This influx of capital highlights the burgeoning interest in decentralized technologies, with venture firms eager to support innovation across the blockchain ecosystem.