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

Morning Report | CoinEx becomes a key hub for Iran to evade sanctions, involving over $3.8 billion in funds; Kalshi seeks a new round of financing, with a valuation potentially rising to $40 billion

Overview of Important Market Events on June 25

Why do cryptocurrency projects always like to change their names?

In many cases, the old names of encryption projects have no competitive advantage, only historical baggage.

From the white-haired stock god to the billionaire fund mogul, the smart people shorting Nvidia are all getting rich using the same framework

Give up on heavily investing in Nvidia's "nine major bottlenecks"! This article analyzes the underlying logic behind top AI investors making billions: physical infrastructure such as electricity, HBM, and optical interconnects are the true keys to wealth in AI hardware.

Morning News | The draft amendment to the People's Bank of China Law aims to clarify the legal status of digital renminbi; South Korea will transfer about 40 unregistered virtual asset service providers to law enforcement agencies

Overview of Important Market Events on June 24

The cryptocurrency industry has entered the "Show Me" era: merely relying on vision is no longer enough

The awareness level of the audience in the cryptocurrency industry—including media, institutions, and retail investors—is steadily increasing, and this trend has become a foregone conclusion.

Interpreting the Ethereum Foundation's new structure: Reaffirming self-sovereignty amid institutional trends

The Ethereum Foundation has announced a new five-layer working framework, clarifying the focus of future development and reaffirming its commitment to decentralized core values amidst the wave of institutionalization.

Popular coins

Latest Crypto News

Read more
iconiconiconiconiconiconicon
Customer Support:@weikecs
Business Cooperation:@weikecs
Quant Trading & MM:bd@weex.com
VIP Program:support@weex.com