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According to reports, the automated market maker (AMM) being tested by the Solana-based memecoin launchpad Pump.fun may take Raydium’s place as the primary decentralized exchange for graded tokens. Aggr News, an X-based news aggregator, was the first to notice this development when it discovered a new liquidity pool, amm.pump.fun, that was being tested internally.
By collecting more swap fees, Pump.fun’s AMM might have a big effect on Raydium’s trading volume. According to DeFiLlama, only 1.4% of tokens launched on Pump.fun currently migrate to Raydium. Maintaining liquidity within its own ecosystem may improve Pump.fun’s standing in the market and lessen reliance on third-party platforms.
The X community is already speculating about potential expansions beyond just an AMM. Some believe Pump.fun might introduce memecoin perpetuals or lending, further increasing its influence. If the transition happens, Raydium could see a 30-50% drop in trading volume, affecting its standing in the market.
Raydium’s token, RAY, has already felt the impact of the news. According to CoinGecko, RAY’s price has dropped 20% in the last 24 hours. The market response highlights concerns about Raydium’s long-term competitiveness if Pump.fun successfully launches its own liquidity solution.
In addition to improving liquidity, Pump.fun recently prosecuted a hacker connected to the $1.4 billion Bybit attack. The software prevented the attacker from using a memecoin launch to launder stolen money.
Before Pump.fun stepped in, the hacker tried to transfer over $26 million in trade volume using a token known as “QinShihuang (500000)”. In order to disguise stolen assets, the attacker moved 60 SOL to a different wallet prior to launching the coin, according to blockchain data.
Pump.fun’s position in the memecoin market is changing quickly as a result of its testing of new features and crackdown on illegal conduct. The Solana ecology may change as a result of its AMM’s following moves.