Data Analysis How much does Raydium depend on pump.fun?

Solana Eco-Mainstream Decentralized Exchange (DEX) Raydium (RAY) prices fell sharply today, mainly because pump.fun appears to be testing its own pool of automatic market makers (AMM) liquidity. It is generally believed that this move may cause the pump.fun token to no longer move to Raydium to establish a liquidity pool after completing internal transactions, but instead trade directly within its own agreement, thereby reducing the transaction volume of Raydium, which in turn affects its revenue and the repurchase scale of RAY tokens.

Ray Logical analysis of price decline (those who are familiar with relevant logic can skip)

A brief review of the relationship between Raydium and pump.fun:

pump.fun is the leading meme token issuance platform in the Solana ecosystem. Its token issuance is divided into two stages: internal transaction and external transaction. After the token is issued, internal transactions are first conducted on the Bonding Curve of the pump.fun protocol itself. When the trading volume reaches $69,000, liquidity will be transferred to Raydium and a liquidity pool is established on this DEX to continue to open trading.

Raydium's profit model:

Raydium charges a 0.25% handling fee from each transaction, of which 0.22% is allocated to the liquidity provider (LP), and the remaining 0.03% is used for repurchase and ecological construction of RAY tokens. Therefore, Raydium's transaction volume directly affects its fee income, which in turn affects the price of RAY.

Key Issues:

If pump.fun builds its own AMM, the liquidity of its tokens will no longer flow to Raydium in the future, which will directly lead to a decrease in Raydium transaction volume and a decrease in handling fee income, which will ultimately affect the value of RAY.

How is Raydium dependent on pump.fun?

This issue needs further in-depth analysis.

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