The Rise of the Solana Ecosystem:
Since the recovery in 2023, the Solana ecosystem has regained attention, with multiple protocol tokens reaching billion-dollar valuations.
The active addresses and daily transaction volume of Solana surpass all other chains.
The Status and Role of Raydium:
Raydium is the leading decentralized exchange on Solana, supporting permissionless pool creation, ultra-fast transactions, and yield earning.
Raydium employs a hybrid AMM model, allowing idle pool liquidity to share with a centralized limit order book.
Trading and Liquidity Management:
Raydium offers three different types of pools: standard AMM pools, constant product exchange pools, and concentrated liquidity pools supporting Token 2022.
A small fee is charged for each swap on Raydium, which is allocated to liquidity providers, Raydium token buybacks, and the treasury.
DEX Ecosystem and Market Share:
Raydium ranks first in the Solana DEX ecosystem, accounting for 60.7% of the total trading volume on SolanaDEX.
Raydium remains the most liquid DEX during trading, creating a positive feedback loop that attracts more traders and liquidity providers.
Relationship with Meme Coins:
Raydium's popularity is attributed to the revival of meme coins on Solana, particularly due to the launch platform for meme coins by Pump.Fun.
The trading volume of tokens generated by Pump.Fun on the DEX shows that nearly 90% of the meme coins generated by Pump.Fun are traded on Raydium.
Diversified Trading Volume:
Although Pump.Fun relies on Raydium, Raydium does not solely depend on meme coins for trading volume.
According to the chart, the trading volume in the past 30 days comes not only from meme coins but also includes other types of tokens.
