Raydium’s token drops 28% as pump.fun appears to test AMM feature
Quick Take Raydium’s RAY dropped 28% in the past 24 hours, as pump.fun appears to be testing out its own AMM functionality.

Solana-based decentralized exchange and automated market maker (AMM) Raydium’s native token slid in reaction to pump.fun seemingly testing its own AMM functionality.
Raydium’s RAY fell 28% to trade at $3.09 as of 4:30 a.m. ET, according to CoinGecko data . Pump.fun is a token creation platform that employs a bonding curve model that automatically migrates a memecoin's liquidity to Raydium AMM for further trading once the token's market capitalization reaches over $69,000.
The introduction of Pump.fun’s AMM could redirect trading volumes and fees away from Raydium, affecting its revenue and the distribution of fees to its liquidity providers.
The Solana-based memecoin launchpad’s AMM feature was first noted by X user @trenchdiver101, who also shared what appears to be the website link to pump.fun’s new AMM feature.
An AMM allows trading via a liquidity pool of two or more tokens. AMMs replace traditional order matching with smart contracts that automatically determine asset prices based on the supply and demand balance within the pool to enable direct trading.
Apart from the impact on Raydium, pump’s AMM feature could help boost the platform's fees, LVRG Research Director Nick Ruck noted.
“The launch of the AMM would reallocate fees currently earned by Raydium and their liquidity providers back to Pump.fun,” Ruck told The Block. “The price of RAY tokens has already dropped by nearly thirty percent on the news as traders suggest the move could be a step towards future rewards, possible lending products, or the possibility that the team will focus more on maximizing value extraction and cost-cutting as the memecoin market draws down.”
Pump.fun generated more than $120 million in trading fees last month, according to The Block’s data dashboard .
The Block has reached out to pump.fun for confirmation and further comments.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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