Raydium (RAY) Gets Hammered by the Market, Drops 24% to $3.23 as Pump.fun Plans to Roll Out Its Own AMM

RAY's market cap now sits around $941.34 million, while its 24-hour trading volume has skyrocketed 204.27% to $202.05 million.

The native token of decentralized exchange (DEX) Raydium, RAY, has taken a hit, dropping 24% over the last 24 hours to hit $3.23, according to CoinGecko data.

This comes amid reports that decentralized memecoin platform Pump.fun is set to launch its own AMM, which could threaten Raydium’s dominance in the Solona DEX market.

RAY’s market cap now stands at around $941.34 million, while its 24-hour trading volume has surged by 204.27% to hit $202.05 million.

From a technical perspective, RAY has been trading within an ascending broadening wedge, a pattern that is typically viewed as bearish.

latest snapshot: $RAY now down 22.9% to $3.30, following multiple reports that @pumpdotfun is set to launch its own Automated Market Maker (AMM).

Track Raydiumはこちらから: https://t.co/Y92TGgMxzb…

… and BTC price live on Phemex: https://t.co/iqkxRw0X0u

(Not financial advice)

The current downtrend began after the token faced rejection at $8.67 on January 23, which led it down to lower trendline support at $4.31 before this latest drop.

Just a few weeks ago, Raydium was enjoying a wave of bullish momentum. Bitcoin (BTC) surged past $103,000 from a Monday low of $89,000, and RAY followed suit, rising by over 16%. Everything seemed to be going well—until now.

Interestingly, Raydium’s Total Value Locked (TVL) is still booming. According to DefiLlama, the DEX hit a new all-time high on Friday with $2.589 billion in locked assets, up massively from just $128 million at the start of 2024. This suggests that investors are still pouring money into the platform, even if the price of RAY is not reflecting that confidence at the moment.

Now, the question remains: Will Raydium be able to regain its footing? With Pump.fun, If it does, and with rapidly increasing competition in the AMM space, RAY’s fate will hinge on investor confidence and whether it can continue to showcase its value in the evolving Solona ecosystem.

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