Raydium (RAY), the leading DEX on Solana, just got hammered, dropping 24% to $3.23 in the past 24 hours. Word on the street is that Pump.fun, a well-known memecoin platform on Solana, is planning to roll out its own AMM, which could shake up Raydium’s dominance.
RAY’s market cap now sits around $941.34 million, while its 24-hour trading volume has skyrocketed 204.27% to $202.05 million. From a technical perspective, RAY has been moving within an ascending broadening wedge, a pattern often signaling trouble.
The current downtrend started after the token got rejected at $8.67 on January 23, dragging it toward its lower trendline support at $4.31 before this latest tumble.
Just weeks ago, Raydium was riding a wave of bullish momentum. Bitcoin (BTC) had surged past $103,000 from a Monday low of $89,000, and RAY followed suit, jumping over 16%. Everything seemed to be going great, until now.
Here’s the twist, Raydium’s Total Value Locked (TVL) is still booming. According to DefiLlama, the DEX hit an all-time high of $2.589 billion in locked assets today, a massive leap from just $128 million at the start of 2024. That means investors are still putting money into the platform, even if the price of RAY isn’t reflecting that confidence at the moment.
Now the question is that can Raydium rise back again? With Pump.fun, If with rapidly increasing competition entering the AMM space, RAY’s fate hinges now on investor faith and if it can continue demonstrating its value in an ever-evolving Solana ecosystem.
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