Raydium (RAY) crashed 24% as Pump.fun announced a rival AMM, sparking competition fears, despite its TVL hitting an all-time high.
Raydium (RAY), the biggest decentralized exchange (DEX) on Solana, was just dealt a bitter blow, plummeting 24% to $3.23 in 24 hours. The news that Pump.fun, one of the favorite memecoin websites, is going to launch its own Automated Market Maker (AMM) on Solana has people speculating about the future of Raydium’s reign.
Although the price dropped, RAY’s market cap is still $941.34 million, and its trading volume jumped 204% to $202.05 million. But technicals are not favorable. The token has been trapped in an ascending broadening wedge, which has a tendency to indicate more issues.
Just a few weeks ago, Raydium was riding high, fueled by Bitcoin’s massive surge. But after hitting a rejection point of $8.67 in January, RAY’s been in a downtrend, sliding down to $4.31 before this latest dip.
The shocker? Raydium’s Total Value Locked (TVL) is actually good. It hit an all-time high of $2.589 billion today, up from just $128 million in January. So while the price might have fallen, investors are still putting money into the platform.
With Pump.fun’s AMM gaining traction, Raydium’s future rests on investor sentiment and how well it will be able to deal with growing competition.
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