Pump.Fun's AMM test causes Raydium (Ray) Sell-off

Ray has seen a fall in value of 31% last day. At the time of writing, the token was traded for $ 2.9. This was the lowest race since the end of October 2024.

Raydium's native token, RAY, has undergone significant drops amid rising speculation that Pump.fun, a leading Solana (SOL)-based meme coin launchpad, is testing its own Automated Market Maker (AMM).

Raydium's native token, RAY, has undergone significant drops amid rising speculation that Pump.fun, a leading Solana (SOL)-based meme coin launchpad, is testing its own Automated Market Maker (AMM).

Neither Pump.fun nor Raydium have officially commented, leaving the market to react on speculation alone.

Neither Pump.fun nor Raydium have officially commented, leaving the market to react on speculation alone.

Pump.fun’s AMM Test Sparks Raydium (RAY) Sell-Off

Pump.fun’s AMM Test Sparks Raydium (RAY) Sell-Off

Over the past day, RAY has seen a 31% decrease in value. At the time of writing, the token was trading at $2.9—marking its lowest price since late October 2024.

Over the past day, RAY has seen a 31% decrease in value. At the time of writing, the token was trading at $2.9—marking its lowest price since late October 2024.

The drop appears to be sparked by the discovery of a testing version of an AMM at the URL “amm.pump.fun.” This was spotted by an on-chain sleuth, "trenchdiver," and quickly gained attention on social media platform X (formerly Twitter).

“Pump.fun making their own AMM liquidity pools, currently being tested at amm.pump.fun,” the user posted.

“Pump.fun making their own AMM liquidity pools, currently being tested at amm.pump.fun,” the user posted.

The implications of this move are substantial. Raydium is a leading AMM and liquidity provider on the Solana blockchain. It has long benefited from its mutually-synergistic relationship with Pump.fun.

The implications of this move are substantial. Raydium is a leading AMM and liquidity provider on the Solana blockchain. It has long benefited from its mutually-synergistic relationship with Pump.fun.

The launchpad enables users to create and launch meme coins at a low cost, while Raydium provides liquidity infrastructure. Once these tokens gain traction, they are listed on Raydium’s trading pools, which generates volume and swap fees. Currently, Raydium charges a 0.25% swap fee, earning it revenue from the trading activity that Pump.fun facilitates.

The launchpad enables users to create and launch meme coins at a low cost, while Raydium provides liquidity infrastructure. Once these tokens gain traction, they are listed on Raydium’s trading pools, which generates volume and swap fees. Currently, Raydium charges a 0.25% swap fee, earning it revenue from the trading activity that Pump.fun facilitates.

However, Pump.fun seems to be pivoting—potentially shifting trading volume and fees away from Raydium and into its own liquidity pools.

However, Pump.fun seems to be pivoting—potentially shifting trading volume and fees away from Raydium and into its own liquidity pools.

This move would allow the platform to either collect more fees on Solana or introduce new reward mechanisms for token holders, posing a direct threat to Raydium’s dominance in the decentralized exchange (DEX) ecosystem.

This move would allow the platform to either collect more fees on Solana or introduce new reward mechanisms for token holders, posing a direct threat to Raydium’s dominance in the decentralized exchange (DEX) ecosystem.

“This move could really hurt Raydium’s business,” one analyst noted.

“This move could really hurt Raydium’s business,” one analyst noted.

Meanwhile, the first token to be integrated into its experimental liquidity pool is reportedly the CRACK meme coin. If these pools prove successful, Pump.fun could completely reduce its reliance on Raydium, dissolving the partnership that has historically fueled Raydium’s growth.

Meanwhile, the first token to be integrated into its experimental liquidity pool is reportedly the CRACK meme coin. If these pools prove successful, Pump.fun could completely reduce its reliance on Raydium, dissolving the partnership that has historically fueled Raydium’s growth.

As such, Raydium may be forced to adapt its strategy or risk losing a major revenue stream. The battle for Solana’s liquidity is heating up, and the market is already reacting.