RAY Slides 7% After Pump.Fun Reveals Its Decentralized Exchange
Pump.Fun, a prominent memecoin ecosystem on Solana, has expanded into the DEX space with PumpSwap. The development weighed on competitor Raydium, with RAY declining shortly after the announcement.
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RAY’s 7% decline is being attributed to anticipated project migration. With Pump.fun introducing PumpSwap, tokens completing their bonding curve now have a fee-free pathway forward — bypassing the previously required 6 SOL commission.
Key Features of PumpSwap
PumpSwap is built on the constant product AMM model — the same foundational logic used by Uniswap V2 and Raydium V4. As bonding curves mature, tokens are deployed directly into liquidity pools, with no 6 SOL friction.
Trades are charged a 0.25% fee, split into 0.20% for liquidity providers and 0.05% for protocol upkeep.
The launch of PumpSwap introduces a more accessible trading experience, likely decreasing user costs and optimizing platform performance. A planned revenue-sharing mechanism for token creators aims to stimulate ongoing development within the Solana ecosystem.
Check this out: Pump․fun Meme Coin Launches Collapsed To 0.82%
Shifting Liquidity and Raydium's Decline
Historically, post-bonding tokens defaulted to Raydium. But with PumpSwap now offering frictionless integration, that flow is beginning to split.
RAY, which trades on major exchanges like Binance, OKX, and KuCoin, has already felt the pressure, falling over 7% to approximately $3.72 within a day (as of writing this piece.)
The arrival of PumpSwap signals a new chapter in decentralized trading on Solana — one that’s already nudging veterans like Raydium toward reinvention. Competition may be the very thing that pushes the ecosystem forward.
It’s worth recalling that amid earlier speculation about PumpSwap, Raydium unveiled plans for LaunchLab — a rival platform to Pump.fun. We covered that announcement in depth on our site.
Of Interest: RAY Surges 12% Following News of a Pump.fun Competitor
Outlook and Strategic Shifts in the Solana DeFi Landscape
PumpSwap introduces structural changes that could enhance DeFi growth on Solana. Easier token migration and lower transaction costs may boost user acquisition, but also intensify competition for market share.
Given the backdrop of declining volumes following a series of industry setbacks, the timing is ripe for meaningful innovation. The community is closely monitoring how Pump.fun and Raydium adapt — their strategic flexibility may determine their relevance moving forward.
Read on: Solana Futures ETFs Are Here—Volatility Shares Leads the Market
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