Pump.fun is quietly testing its AMM to offer liquidity pools for its graduated tokens and potentially reduce reliance on Raydium.
By Benjamin Njiri
Edited by Julia Sakovich
Updated
2 mins read
Raydium’s RAY $2.01 24h volatility: 2.7% Market cap: $584.58 M Vol. 24h: $66.25 M has plunged 24% following reports of Pump.fun piloting a similar automated market maker (AMM) as its replacement. According to a pseudonymous market watcher Bonaso, Pump.fun’s graduated tokens have always been the lifeline for Raydium.
As a result, a replacement of Raydium for its in-house AMM would be bearish for RAY’s long-term outlook.
Photo: Pump.fun (Its AMM’s UI is similar to Raydium)
Until recently, Pump.fun has been known as the premier Solana-based meme-coin launchpad. But, listing and trading (swapping) of the graduated tokens has always happened on AMMs like Raydium, Meteora, or DEX aggregators like Jupiter.
To put Pump.fun’s move into perspective, Coinspeaker checked Raydium’s revenues and the trading volume contributed by Pump.fun’s tokens. In the past 30 days of trading, Raydium logged in $136M in fees and ranked seventh, just above Pump.fun’s $112M, DeFiLlama data revealed.
Over the same period, $31 billion worth of Pump.fun tokens were traded on Raydium, surpassing Meteora, Orca, and Phoenix. In the past week, Pump.fun tokens contributed 28% of the total trading volume on Raydium.
Photo: Dune
Simply put, Pump.fun’s move to launch its AMM could dent Raydium’s trading volume and fees; hence, the fears about RAY could be somewhat warranted.
Notably, RAY and SOL SOL $136.7 24h volatility: 2.1% Market cap: $69.93 B Vol. 24h: $3.17 B have been the best ways to get indirect exposure to memecoin mania that dominated 2024 and early January 2025 after the launch of TRUMP TRUMP $11.14 24h volatility: 4.2% Market cap: $2.23 B Vol. 24h: $393.77 M and MELANIA MELANIA $0.66 24h volatility: 0.9% Market cap: $99.10 M Vol. 24h: $19.20 M tokens. RAY pumped +90% during TRUMP memecoin mania in mid-January, while SOL nearly tapped $300.
Photo: The Block
Even so, Pump.fun’s AMM isn’t the only risk factor for RAY. The overall memecoin sector has cooled, and sentiment soured after the LIBRA fall-out. Meme tokens market cap shrunk from nearly $120B to $68B per CoinMarketCap.
In particular, Pump.fun tokens trading volume on Raydium dropped from over $3B to below $600M in less than two months.
Source: RAY/USDT, TradingView
Meanwhile, the bearish update has dragged RAY down 24% to $3, effectively erasing all the post-US election gains. However, the price dropped to a price area that doubled as a key weekly support and a range low of the ascending channel.
If the support fails to hold, RAY’s retracement could extend to the next key support and 100-weekly moving average of $2.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin is a Telecommunication Engineering graduate who is passionate about crypto-markets and unraveling market trends. Armed with data, charts and patterns, he's interested in making the intricate, complex landscape of digital assets easier for every user.
