On PumpFun's Automated Market Maker development, Raydium decreases 30%
After over 35% dip the day before, Raydium's price stays at $3 on Tuesday.
The reports of a rival Automated Market Maker being created by PumpFun primarily drove the price reduction.
Exchange supply rises while RAY loses $334 million in market capitalization.
After over 35% decline the day before, Raydium (RAY) price swings about $3 on Tuesday. The reports of a rival Automated Market Maker (AMM) being built by PumpFun and losing $334 million in market capitalization caused this price collapse by driving more exchange supply.
Raydium suffers while PumpFun builds its Automated Market Maker.
Monday at the beginning of this week, Raydium's stock plunged approximately 35% amid speculations of a rival Automated Market Maker in development by PumpFun.
Fear, uncertainty, and doubt (FUD) this news creates among RAY investors may cause panic selling as the creation of AMM by PumpFun moves liquidity away from Raydium, therefore affecting its position in the Solana ecosystem. CRACK, the first test token, already finds place in the liquidity pool.
Radium loses $344 million in market value.
From Monday's high of $4.27, Raydium's price decreased to $2.81, therefore wiping out $344 million in its market capitalization from $1.22 billion to $876 million within the same time.
Rising from 4,364 on Saturday to 6,345 on Tuesday, RAY's supply on exchanges measure also indicates higher selling pressure.
