Key Takeaways:
- Raydium’s RAY token plunged 25% after speculation that Pump.fun is developing its own AMM, potentially diverting trading volume from Raydium.
- An analyst shared an AMM interface branded with Pump.fun’s logo, hinting at new liquidity pools that could impact Raydium’s revenue model.
- Pump.fun remains silent, while Raydium faces uncertainty as its token struggles amid the rumors.
Raydium’s native token, RAY, plummeted 25% after speculation arose that memecoin launchpad Pump.fun might be developing its own automated market maker (AMM).
The rumor started when on-chain analyst “trenchdiver” shared evidence of an AMM interface branded with Pump.fun’s logo, suggesting the feature was in beta testing.
.@pumpdotfun appears to be developing its own AMM, according to a new URL.
— Satoshi Club (@esatoshiclub) February 24, 2025
No official announcement yet, but the market is reacting.
Raydium's $RAY token is down 27% as traders speculate Pump tokens may no longer migrate to its pools. pic.twitter.com/3nnEF3mwZ6
If Pump.fun launches its own AMM, it could reduce trading volume on Raydium, which currently benefits when Pump.fun tokens transition to its liquidity pools after reaching a certain trading threshold.
Trenchdiver also pointed to a February 20 transaction showing Pump.fun adding its first test token, Snowfall (CRACK), to its AMM pool.
EXCLUSIVE : @pumpdotfun is working on their own AMM liquidity pools, which is currently being tested on https://t.co/nuir86gnkl
— trenchdiver (@trenchdiver101) February 24, 2025
It seems they are planning to have pump tokens graduate to their own pools instead of Raydium so they can either extract more fees on Solana or have… pic.twitter.com/svmWfl6Rlt
Following the leak, Snowfall briefly surged to a $5.4 million market cap before dropping 40% in an hour.
Meanwhile, RAY’s price nosedived, trading at $3.22, according to CoinGecko.
Despite growing speculation, Pump.fun has not confirmed or denied its AMM plans.
Analysts suggest that if implemented, Pump.fun could charge higher swap fees than Raydium’s current 0.25%, potentially boosting its revenue.
Since launching in January 2024, Pump.fun has already generated over $500 million in fees.
The uncertainty surrounding its AMM ambitions continues to put pressure on RAY’s price and Raydium’s market position.
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