Jupiter Markets Update: 7-Day Insights
Summary
Gauntlet will regularly post rolling seven-day market updates to notify the Jupiter community about:
- Trader PnLs - signaling the health of the ecosystem and market dynamics;
- Market competitiveness with Binance (leading CEX) - indicating Jupiter’s position against the most liquid venue for trading perpetuals;
- JLP price and Sharpe ratio vs JLP index - demonstrating JLP’s attractiveness compared to a weighted asset index.
The goal of these 7-day market updates is to inform the Jupiter community about the health of the perpetuals ecosystem through metrics not currently tracked on our live dashboard (Risk Dashboard). This complementary information provides a more comprehensive view of Jupiter’s market performance and ecosystem dynamics.
Analysis
SOL PnL Chart:
Following SOL price surge from Sep 18 to Sep 20 ($127 > $151), trades made a lot of money on SOL orders, reflected in their weekly PnL with gross PnL of $4.23m and net PnL (after fees) at $876.62k. The win rate remains 47.5%, within the average range.
SOL Competitiveness with Binance:
Based on recent stats, a $2.5m order will be more competitive on Jupiter up to a 72h holding period, primarily driven by lower base/price impact fees.
Implication: Jupiter’s edge in SOL trading, especially for larger orders and medium-term holds, could attract more institutional traders and liquidity providers, potentially leading to increased volume and further improved competitiveness.
BTC PnL Chart:
Following the market’s upward movement from 9/18 to 9/20, traders grossed $1.33M out of BTC trades with $655k net.
BTC Competitiveness with Binance:
Jupiter’s competitiveness with Binance for BTC trades remains trickier, primarily due to lower liquidity.
Implication: This highlights a key area for improvement. Increasing BTC liquidity on Jupiter should be a priority to attract more traders from centralized exchanges and improve overall platform competitiveness.
ETH PnL:
Traders grossed less for ETH despite positive market movement, with net PnL close to 0 and gross PnL at $255.85k.
ETH Competitiveness with Binance:
Jupiter shows a competitive edge for ETH trading on larger trade sizes and shorter holding periods, offering lower fees and costs compared to Binance in these scenarios. However, Binance maintains an advantage for smaller trades and provides more lower funding rates.
JLP price vs Index:
JLP outperformed the index in the past week, signaling healthy protocol performance. JLP’s outperformance demonstrates its value proposition to liquidity providers.
JLP Price and Index Sharpe Ratio:
JLP remains a better risk-adjusted option compared to the JLP index (weighted risky assets of the pool), primarily because of reduced volatility.
Closing Thoughts
Jupiter shows a competitive edge for larger trade sizes (>$1,000,000) and shorter holding periods across markets, mostly offering lower fees than Binance in these scenarios. However, Binance maintains an advantage for smaller trades and provides lower funding rates. Gauntlet continues to monitor the markets and is looking forward to the implementation of the dual-slope borrow fee, which is expected to improve JLP yield and Jupiter’s competitiveness against Binance.
If you have any questions about our current methodology, please contact @riskringer on Telegram or Twitter.
To view our live dashboard with other important metrics, follow this link.
