The Raydium cryptocurrency’s price has dropped by over 22% over the past 24 hours, to a low of $3.28, according to data from GeFrTerminal. This drop is a significant concern for Raydium fans, as it likely indicates increased competition from alternative platforms. The price further dipped by 5% in the past hour, which raises questions about how Raydium is set up to adapt in this competitive landscape.
Raydium’s decline is reportedly seeded by Pump.fun launching its own automated market-making (AMM) platform. Pump.fun, the launchpad for Raydium, has yet to respond to Decrypt’s cryptocurrency project’s announcement. Two researchers, Min Jung and الكامل, have commented, but no further discussion has been forthcoming.
The potential 成势 of Pump.fun’s AMM raises concerns about Raydium’s dominance as a trading venue. If Pump.fun does indeed develop its own AMM, it could reduce future swap volumes on Raydium, lower fees, and expose Raydium to greater competition. In Section 4 of the test site’s terms and conditions, which is linked to Pump.fun’s fees, it appears that Raydium could potentially offer competitive trading fees to match its more liquid platform.
Raydium’s position as the default trading venue for new tokens sits in tension with many users and investors, even as millions have placed their Raydium tokens into Pump.fun’s pool. While only 6% of Raydium’s tokens successfully make the cut, far fewer, only 1.4% of the overall launch, have reached Raydium’s platform. Additionally, only around 100 of these tokens have met the $1 million cap, summoning alarm bells for Raydium’s current form.
Min Jung, an analyst at Presto Research, highlighted the role of Pump.fun in driving Raydium’s price drop. “Raydium has historically benefited from Pump.fun’s AMM because Graduate tokens have migrated to its pool, where it charges a 0.25% fee.” He added, “The integration of Pump.fun’s advanced liquidity pools into Raydium’s platform is a key reason for this shift, as faster trading and lower fees lead to a smoother, more liquid environment for Raydium.”
Despite these considerations, analysis from Decrypt suggests Pump(fun’s rapid APFTech is the reason for the price drop. The depth of Pump.fun’s fees and risks should create a significant challenge for Raydium, as investors and users alike could face greater competition from this rushing platform. As Raydium continues to accept its role in a rapidly evolving cryptocurrency landscape, its declining price and relative underperformance compared to Pump.fun’s expectations will weigh heavily on its futuresehen.
