Pump.fun is reportedly cooking something big while the digital assets market struggles to regain the bullish momentum. The Solana based meme coin launching platform is testing new automated market maker (AMM) liquidity pools that could possibly help Pump.fun to break free from Raydium.
The recent development around Pump.fun testing new AMM liquidity pools has already pushed Raydium off the cliff. RAY price has dropped by over 32% in the last 24 hours. However, Solana also continued its losing streak. SOL price declined by 9% to slide below the $155 mark, causing panic among investors.
Pump.fun eyes AMM liquidity pools
Pump.fun is apparently working on its in-house AMM which might replace Raydium as its liquidity provider. It looks like the platform is planning to shift pump tokens from Raydium into its own pools. This might be an action to capture higher fees on Solana or to reward token holders. As of now, Pump.fun sends meme coins to Raydium after they hit enough trading volume.Â
An X user, trenchdiver, dropped some on-chain evidence in a post to back it up. They posted a screenshot of a live beta interface for a Pump.fun AMM. They mentioned $CRACK as the first test token added to the pool on February 20. They also predicted that once the meme coin generating platform acknowledges the secret AMM liquidity pool feature they’re working on, $CRACK will skyrocket.
Once https://t.co/Hko8ObYG38 acknowledges the secret AMM liquidity pool feature they're working on, $CRACK will skyrocket
CA: CitRGsrgU7NjaXsxdMFc7sfsxtSnPdtkhHJqbPvhpumpWe're all so early.
— trenchdiver (@trenchdiver101) February 24, 2025
This shout out pushed $CRACK to pump and breach the $5 million market cap in just one hour. Then it crashed 40% just as fast is went up. It is trading at an average price of $0.00178 as of press time.
Raydium holders left in the dust?
The question right now is whether Pump.fun is about to snatch liquidity away from Raydium or if the move will actually benefit traders. It definitely crashed Raydium’s price. The fresh drop has dragged RAY down by 61% in the past 30 days. It is trading at an average price of $2.88 as of press time.Â
RAY has dwindled by 82% from its all-time high (ATH) of $16.93, recorded on September 13, 2021. Meanwhile, its 24-hour trading volume skyrocketed by 478% to stand at $328 million.
Since early 2024, Pump.fun has been rewriting the meme coin playbook. It has accumulated $500 million in fees, billions in volume, and a whole lot of controversy. It allows anyone to launch a token in seconds and automates market-making with a bonding curve system. It locks 800 million tokens into this system (out of 1B total supply) and creates a tradable market instantly.
The fresh anticipated change has caused a lot of damage to Solana as its price dropped by 14% over the last 7 days. SOL is trading at an average price of $158 as of press time. Its 24-hour trading volume is up by huge 138% to stand at $3.54 billion.
Cryptopolitan Academy: Coming Soon - A New Way to Earn Passive Income with DeFi in 2025. Learn More
