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

OKX Star analyzes Binance's competitive advantages: when regulation levels the playing field, competition has just begun

OKX founder Star published a lengthy article, systematically analyzing Binance's competitive advantages over the years: regulatory arbitrage, speculative narrative cycles, social media control, and superficial compliance, stating that the essence of these advantages is not product capability, but ra...

Full version of the debut Q&A! Federal Reserve Chairman Waller: Sticking to the 2% inflation target, establishing five special working groups, individual did not submit the dot plot

Federal Reserve Chairman Waller's debut featured a significant slimming statement, the cancellation of forward guidance, refusal to submit the dot plot, and the establishment of five working groups, vowing to uphold the 2% inflation target, which triggered a sharp decline in U.S. stocks and a surge ...

From Disruptor to Shadow Market: The Crypto Market is Becoming a Colony of Traditional Finance

"Coin-stock linkage" has evolved from the early stage of macro correlation and one-way penetration of emotional funds to the current 3.0 stage, where on-chain perpetual contracts provide extended trading hours and emotional signal value for traditional assets 24/7, and participate in Pre-IPO pricing...

Dalio's important long article: How to position in the current market environment?

Do not confuse the excitement for new technologies with whether those tech stocks are attractive.

DeepSeek Financing Story

DeepSeek's financing insider information exposed: "Four-hour meeting" fully demonstrates Liang Wenfeng's determination for AGI, over a hundred institutions involved, Sequoia and Hillhouse rarely absent, not poaching talent is the hardest red line.

Morning Report | Illinois signs the strictest digital asset tax law in the U.S.; RWA tokenization market size surpasses $43 billion, institutions accelerate the migration of on-chain assets

Overview of Important Market Events on June 17

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