PumpFun’s In-house DEX Could Spell Doom for Raydium

Raydium’s days as Solana’s go-to liquidity hub might be numbered.
Memecoin launchpad Pump.fun is reportedly testing its own automated market maker (AMM), according to multiple reports.
Speculation started swirling after users spotted a new website under amm.pump.fun, hinting that the project may soon bypass Raydium entirely.
Currently, tokens launched on Pump.fun follow a bonding curve model, where prices increase as more people buy them. Once a token ‘graduates’ from this phase, a liquidity pool is automatically created on Raydium to facilitate open-market trading.
However, if Pump.fun moves forward with its own AMM, that entire process could be disrupted. Instead of relying on Raydium, the new system would allow users to trade tokens within the Pump.fun platform.
This means Pump.fun could collect additional trading fees rather than sharing them with Raydium. And users might benefit from token-holder incentives or other rewards Pump.fun builds into its AMM.
As a result, Raydium’s RAY token has already plunged by more than 25%, according to Coingecko data.

On the other hand, some users say this is an overreaction since Pump.fun tokens only make up a small portion of Raydium’s total volume, with the majority coming from SOL pairs.
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