Raydium’s native RAY token has taken a hit, nosediving by more than 29% after reports emerged that Pump.fun is developing its own automated market maker (AMM). If true, the move could threaten Raydium’s dominance in the Solana decentralized finance (DeFi) ecosystem. Pump.fun to Launch AMM? Reports have been circulating that Pump.fun, known for its meme coin launches, is actively testing its AMM liquidity pools. According to @trenchdiver101, the testing is happening on amm.pump.fun, with indications that the platform plans to migrate pump tokens to these pools instead of Raydium. This shift could allow Pump.fun to extract more fees on Solana or implement new incentives for token holders. Onchain data shows the first token, $CRACK, has already been added to the AMM, marking the first step of the transition. For a long time, Raydium was the go-to platform for decentralized trading on Solana, with most graduated tokens migrating to its AMM. As of now, projects pay an average of 6 SOL, which is about $950, to graduate their tokens to Raydium from Pump.fun. However, only 1.4% of tokens launched on Pump.fun have progressed to Raydium, with fewer than 100 breaching the $1 million mark in market cap. Still, analysts believe a new pool by Pump.fun could reduce future swap volumes on Raydium, lowering its fee revenue. The shift could also impact the platform’s total value locked (TVL). Data from DefiLlama shows the value of crypto assets locked at $1.46 billion, a steep dip from its mid-January peak of $2.96 billion. Raydium Down 29% The price of the RAY token has also dropped significantly. At the time of writing, it had shed 29.1% from its value in the last 24 hours, moving from an intra-day high of $4.38 to its current level of $3.09. It has also fallen 34.5% in the past seven days, underperforming both the broader crypto market as well as other DeFi assets. While the damage was even more significant across 30 days, when it dipped nearly 59%, it has managed to retain some of its gains from the last 12 months, with CoinGecko data showing it is still up more than 193%. At the time of going to press, no one from the meme coin launchpad had commented on the rumors. Earlier in the month, co-founder Alon Cohen was forced to dismiss speculation that Pump.fun was gearing up for PUMP token launch. Crypto reporter Colin Wu claimed the platform was partnering with an unnamed exchange for a Dutch auction of the supposed token. However, Cohen rubbished the suggestion and asked users to rely only on official updates regarding any Pump.fun developments. The post Raydium’s RAY Token Drops 29% Amid Rumors of Pump.fun’s Competing AMM appeared first on CryptoPotato .
