Jito Crosses $2B in TVL - What Does This Mean For JTO?

Jito, Solana’s leading liquid staking provider, continues its impressive growth throughout 2024. Capturing over $2B in TVL (Total Value Locked) for the first time in the protocol’s history, Jito’s unique MEV rewards structure has established the platform as a popular choice for the ecosystem’s liquid stakers.

Jito Takes Aim at Next Target

With July drawing to a close Jito has achieved a key milestone, recording a new all-time high in protocol TVL. Securing as much as $2.18B on July 22nd, Jito’s impressive TVL has weathered this week’s volatile conditions and held strong above the $2B mark, based on DeFiLlama data.

While leading all current Solana DeFi applications on TVL, Jito is still far from becoming the largest Solana DeFi application by TVL in history. That record is currently held by Saber, an early AMM (Automated Market Maker) which captured over $4.15B in TVL on September 12, 2021.

At the time, Saber accounted for 54.6% of Solana’s entire TVL, which DeFiLlama recorded at $7.6B on Sep 12, 2021.

However, Solana’s DeFi ecosystem is far more developed and competitive now than it was back in 2021. There are dozens more applications vying for user capital, making Jito’s dominance even more remarkable. Jito currently accounts for 39.06% of network TVL, based on DeFiLlama data.

Jito is currently the only Solana-based application with over $2B in TVL. However, competitors aren't far behind.

Coming up close behind, Marinade Finance currently boasts over $1.33M in TVL. Capturing 25.85% of network TVL, Marinade is actually a more popular option among users, with over 130,000 active staking accounts compared to Jito's 103,000. This is largely due to the popularity of Marinade's optimized native staking protocol, which accounts for 31.97% of its TVL according to Dune Analytics.

Will Jito’s Success Lift JTO?

While Jito’s TVL enjoys QOQ growth, the same cannot be said for JTO, the platform’s native governance token. While Jito’s TVL has grown by 210% YTD, JTO’s price has fluctuated heavily and struggled to find a consistent trend, according to Step Finance data.

Opening the year at $1.88, JTO is currently exchanging hands at $2.76, representing a YTD increase of 46.8%. However, it’s worth noting that JTO peaked at $4.64 in April, marking a 146.8% increase on its yearly open.

While one could argue that JTO has underperformed based on Jito’s consistent growth, it’s important to recognize the role that JTO plays in the Jito ecosystem. 

A governance token, JTO enables holders to vote on proposals that influence the growth and direction of the platform. As such, JTO value is not directly tied to the protocol’s DeFi growth metrics.

However, price catalysts may not be far away. A Jito team member, going by the handle 'segfaultdoctor', has hinted that big changes are on the horizon for Solana’s MEV ecosystem. 

As the leading provider of MEV services on the Solana network, Jito has monopolized this sector. However, competitors are starting to emerge. New projects like the Toby Foundation aim to deploy alternative MEV services on Solana, attempting to disrupt Jito’s dominance.

Regardless, Jito remains Solana’s largest DeFi application by TVL. Providing essential services like liquid staking, MEV, and a validator client, Jito has cemented itself as an integral part of the Solana ecosystem.

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