RAY Drops 24% Following Pump.fun’s AMM Replacement Announcement
Raydium's RAY has dropped 24% following reports that Pump.fun is developing a competing automated market maker (AMM). This development could negatively impact RAY's long-term outlook, as Pump.fun tokens have been crucial for Raydium.
- Pump.fun previously operated primarily as a Solana-based meme-coin launchpad.
- In the last 30 days, Raydium generated $136 million in fees, ranking seventh, while Pump.fun earned $112 million.
- Trading of Pump.fun tokens on Raydium amounted to $31 billion, contributing to 28% of its total trading volume in the past week.
- Concerns about RAY's future arise due to potential drops in trading volume and fees from Pump.fun's AMM launch.
- Meme token market capitalizations shrank from nearly $120 billion to $68 billion following negative sentiment post-LIBRA fallout.
- Pump.fun tokens' trading volume on Raydium fell from over $3 billion to below $600 million within two months.
- RAY's price decline has erased recent election-related gains and tested a key weekly support level at $3.
- If this support fails, RAY may drop further to the next support level around $2.
Photo: Pump.fun (Its AMM’s UI is similar to Raydium)