logo

Pump.fun self-hosted AMM, can Raydium still monopolize the meme liquidity pool?

By: blockbeats|2025/02/25 15:45:02
0
Share
copy
Original Author: CryptoBaci, Crypto Researcher
Original Translation: ChatGPT

Editor's Note: This article analyzes Pump.fun's launch of a new AMM challenging Raydium's monopoly position. Pump.fun aims to reduce reliance on Raydium through an independent liquidity pool, potentially causing liquidity outflow and impacting Raydium's market share. The article also discusses the advantages and risks of the new AMM, especially liquidity issues and potential vulnerabilities.

The following is the original content (slightly rephrased for better readability):

Pump.fun has just introduced its own AMM, which may indicate that Pump.fun is no longer relying on Raydium. They have launched their own liquidity pool, and liquidity may begin to shift away from Raydium. This implies:

• Meme coins may no longer need Raydium.

• Pump.fun will keep all fees within its own ecosystem.

• There may be LP rewards (similar to other DEXs).

The first test token $CRACK has been added to the liquidity pool.

Pump.fun self-hosted AMM, can Raydium still monopolize the meme liquidity pool?

So far, all Meme coin liquidity has relied on Raydium. But now:

• You create a token and it can be traded immediately.

• Traders do not need to switch platforms.

• Pump.fun is becoming a fully independent ecosystem.

This may shift the power balance on Solana.

Advantages of the new AMM:

• Instant liquidity without relying on external platforms.

• Fully integrated with Pump.fun.

• Early opportunities for traders → arbitrage and potential system vulnerabilities.

• If this project is successful, it is an early opportunity to enter a new market.

Risks and Drawbacks:

• Still in beta stage → potential vulnerabilities and security risks.

• Liquidity has not reached Raydium's depth yet.

• There is no guarantee that traders will fully migrate to this AMM.

It's either Pump.fun dominates the market share, or this AMM remains niche.

How does this affect $RAY?

Raydium has already felt the pressure. $RAY dropped 10% after the AMM release news. Why?

• If liquidity starts flowing out, Raydium's pool revenues will be impacted.

• Decrease in trading volume = reduced interest in the DEX = further price decline.

• If this trend continues, $RAY could face an even bigger hit.

Raydium is losing control of Solana liquidity.

What to do next?

• Try the new AMM.

• Monitor liquidity and new tokens.

• Continue to observe Raydium's performance—can they defend their position?

Original Article Link

You may also like

Abraxas Capital Mints $2.89 Billion USDT: Liquidity Boost or Just More Stablecoin Arbitrage?

Abraxas Capital just received $2.89 billion in freshly minted USDT from Tether. Is this a bullish liquidity injection for crypto markets, or is it business as usual for a stablecoin arbitrage giant? We analyze the data and the likely impact on Bitcoin, altcoins, and DeFi.

A VC from the Crypto world said AI is too crazy, and they are very conservative

Amid the Crypto frenzy and with investors who once missed out on Pinduoduo, a new AI fund called Impa Ventures was established, rejecting bubble narratives and adhering to a conservative "problem-first" strategy to seek real business value.

The Evolutionary History of Contract Algorithms: A Decade of Perpetual Contracts, the Curtain Has Yet to Fall

The ten-year evolution of perpetual contracts: from pulling the plug on 312 to the shocking short squeeze of TRB, a deep dive into the pricing machine that averages $200 billion daily, written with countless liquidations and real money, detailing the blood and tears of risk control theory.

Kicked out by PayPal, Musk aims to make a comeback in the cryptocurrency market

Cashtags generated a trading volume of 1 billion dollars just a few days after its launch, marking a strong start for Musk's super app strategy. For the cryptocurrency market, X's layout may be one of the most anticipated sources of retail growth after the meme coin craze subsides.

Solana ETF News: What Is a Solana ETF and Why Is Goldman Sachs Betting $108 Million on SOL?

Solana ETF news today shows Goldman Sachs disclosed a $108M position while total SOL ETF inflows reached $1.45B. Analysts now expect up to $6B in institutional demand as Solana trades 71% below its all-time high.

Bitcoin ETF News Today: $2.1B Inflows Signal Strong Institutional Demand for BTC

Bitcoin ETFs news recorded $2.1B inflows over 8 consecutive days, marking one of the strongest recent accumulation streaks. Here’s what the latest Bitcoin ETF news means for BTC price and whether the $80K breakout level is next.

Popular coins

Latest Crypto News

Read more