Raydium’s Ray token plummeted on Sunday in the midst of speculation that Meme Coin Launchpad Pump.Fun is preparing to launch its own automated market system.
Ray has fallen 22% to $ 3.28 in the last 24 hours and is another 5% down according to the last hour facts from Gekkoterminal.
Pump.fun has yet to respond Decrypts Request for comments. The representatives of Raydium have not publicly tackled the situation and have returned requests for comments.
The sharp decline follows the discovery of an apparent test version of an AMM that could reduce a considerable trade volume away from the Raydium platform.
“Raydium has benefited considerably from Pump.Fun, because graduated tokens have been historically migrated to his AMM, where it charges a reimbursement of 0.25% on Swaps,” said Min Jung, an analyst at Presto Research, said Decrypt.
An automated market maker (AMM) is a system that uses algorithms and liquidity pools to automatically set the prices of assets based on supply and demand, to replace traditional order books.
Users deposit funds in shared pools and prices adjust algorithmically using formulas to maintain the balance, making continuous trade without intermediaries possible.
Based on Decrypts Internal tests, the security certificates of the site seem legitimate and point it to the platform of the pump. Fun, although the Filiaal Doman of the Test Amm did not reflect using a look -up tool for domain name services (DNS).
The potential shift threatens the position of Raydium as the standard trading location for new Solana tokens.
“If Pump.Fun does indeed develop its own AMM, this future Swap volumes could reduce raydium, which leads to lower income from the reimbursement,” Jung said.
Currently, projects 6 Sol (around $ 950) pay to “graduate” their tokens to the more liquid trading pools from Raydium.
Section 4 of the General Terms and Conditions of the Test Location Footer refers to Pomp.Fun’s reimbursement structureWhich means that the platform could implement competent trading costs to match Raydium, although specific parameters remain undefined, considering how the site still seems to be in the test phase.
The rise of Pump.Fun has been meteoric, with the platform processing more than $ 5.3 million in daily costs at its peak.
Only 1.4% of the tokens launched on the platform is currently continuing to the Polish of Raydium, with less than a hundred Of those who go beyond a market capitalization of $ 1 million.
Published by Sebastian Sinclair
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