Jito (JTO) token has staged a strong recovery in the past few days as its ecosystem continues growing a few weeks after launch. JTO price jumped to a high of $2.80 on Sunday, its highest point since December 26th. It has risen by over 90% from its lowest point this year, giving it a market cap of over $305 million.
Jito TVL is soaring
Jito is one of the newest and fastest-growing platforms in the blockchain industry. It was launched a few months ago to take advantage of the Solana bull run that pushed SOL to become the fifth-biggest cryptocurrency in the world.
Jito provides a service that has become essential for crypto investors: liquid staking. Liquid staking is a way of staking crypto tokens in a decentralized and flexible manner. It differs from the normal way of staking where one has to fix their tokens for a month.
Liquid staking allows users to unlock liquidity on staked SOL to use across the DeFi industry. It also gives users control of their funds and to stake to the first MEV-powered stake pool. MEV stands for maximum extractable value.
Jito aims to become a viable alternative to Lido DAO, which has become the biggest player in the DeFi industry. Lido offers staking solutions to Ethereum and Polygon after depreciating Solana in 2023.
Jito is doing well. According to its website, its ecosystem has grown to over 135k customers while the Total Value Locked (TVL) has jumped to 6.6 million SOL. At the current SOL price, this TVL stands at over $640 million. This makes it the second-biggest Solana dApp after Marinade Finance.
Jito is competing with several other platforms in Solana liquid staking. The biggest competitor is BlazeStake, which has over $215 million in assets. The others are JPool and Socean.
The future performance of Jito’s JTO token will depend on the overall growth of Solana and its ecosystem. Recently, Solana has held quite well as it jumped by over 500% in 2023.
Jito price forecast
Turning to the 3H chart, we see that the JTO token price bounced back from the year-to-date low of $1.3752 to a peak of $2.8 during the weekend. This rally happened as the price of Solana and its tokens bounced back.
It has now remained above the 50-period moving average, which is a bullish sign. JTO token is also consolidating as some traders start to take profits. Still, I suspect that the coin will continue rising as buyers target the key resistance at $3. This bullish view will become invalid if it moves to the support at $2.4.