Raydium token plummets by 22%: Competition from Pump.Fun?

Raydium Token crashes by 22% – Competition from “Pump” Functions?

At Raydium (RAY), the wind has changed since last week, as BAYC ApeCoin (APE) has copied important functions from there. RAY is reacting with a price drop. At Raydium (RAY), the wind has changed since last week, as BAYC ApeCoin (APE) has copied important functions from there. RAY is reacting with a price drop.

The DeFi idea of dual investment or two-way commitment as a mechanism for new liquidity pools is well-received in the crypto industry and was primarily introduced via Raydium (RAY). Raydium was able to position itself in particular on Solana (SOL), thus continuing to attract followers and excitement in the ecosystem. But a week ago, ApeCoin (APE) began to offer so-called pump functions and, in doing so, scored with similar mechanisms in the ecosystem. The decentralized exchange referred to as Pump, which was basically created as a small offshoot of the well-known BAYC universe, has risen to become a serious competitor for Raydium, and the novel functions should be a main reason why on the RAY price curve, temporary heavy price losses of almost 22 percent have occurred. Currently, RAY is quoted at $0.19.

But to what extent does this moment affect the enthusiasm of the market? Raydium has now well over $100 million in funds stuck in the ecosystem, while ApeCoin is home to about $150 million at Pump. What’s fascinating here is how both projects deal with the performance of their liquidity pools. Raydium has imposed more expensive fees to attract professional liquidity providers with trustworthy expertise. Pump has partly set zero fees to get an advantage over others. The question now is whether the market will allow Raydium to continue on its tried and tested strategies and innovations – or whether Pump and its involved active groups for imitation might be able to attract the masses.

Analysts therefore currently disagree on how sustainably positive the rapid growth of Pump could turn out to be in the future. It should be noted that Pump eventually belongs legally to the BAYC universe’s formal infrastructure, but unlike Raydium, it does not yet have a comprehensive roadmap. Hence, for now, the fight continues at the level of performance and offers. A similar story unfolds in the pricing of RAY and APE, which indeed does not seem connected at first glance. But whether ApeCoin could benefit from this temporary Raydium dip, directly showing it in the press, remains open.