Raydium, a leading automated market maker on the Solana blockchain, has clarified claims regarding the potential use of its market-making system by Pump.Fun.
Pump.Fun’s New Infrastructure and Market Impacts
Pump.Fun is testing transactions using its own infrastructure instead of Raydium's liquidity pools. This has raised concerns about a potential decline in demand for Raydium, prompting many traders to sell their RAY tokens.
Revenue Model and Risks from Increased Competition
A significant portion of Raydium’s daily transaction fees comes from Pump.Fun. If Pump.Fun transitions to a different system, Raydium's revenue may decline. Raydium officials emphasize the importance of maintaining the current system for the ecosystem.
Future of Platforms and Market Reaction
Pump.Fun's partner, Alon Cohen, refrained from commenting. Market observers are watching both platforms' strategies as these changes in the Solana ecosystem could influence traders' decisions.
Developments between Raydium and Pump.Fun create market uncertainty and could significantly influence traders' decisions.
