Pump.fun Reportedly Testing AMM: Is Raydium at Risk?

Is Pump.fun Secretly Testing Its Own AMM? Big Changes Ahead for Solana

Pump.fun Testing In-House AMM: A Potential Game-Changer for Solana Memecoin Market

Pump.fun, the popular Solana-based memecoin launchpad, is reportedly testing its own automated market maker (AMM), which could soon replace Raydium as the go-to decentralized exchange (DEX) for graduated tokens. The news first surfaced through a tweet by @trenchdiver101, highlighting a testnet site, amm.pump.fun, signaling a major shift in the platform’s ecosystem.

The new AMM, currently under internal testing, aims to create dedicated liquidity pools for memecoins directly on Pump.fun, potentially reducing dependency on Raydium. If fully implemented, this change could allow Pump.fun to capture more fees and offer tailored incentives for token holders, ultimately keeping more liquidity within its ecosystem.

Raydium Price Feels the Heat: 26% Drop Post-Announcement

The impact on Raydium was immediate. Following the crypto news, Raydium’s native token, $RAY, plunged by 26%, now trading at $3.19 with a market cap of $929.49 million. Despite the price dip, trading volume surged by 256%, reaching $233.25 million, as traders reacted to the potential shift in liquidity dynamics.

Currently, about 1.4% of tokens launched on Pump.fun graduate to Raydium’s pools, with projects paying 6 SOL (approximately $950) for the migration. A successful rollout of Pump.fun’s in-house AMM could drastically cut this flow, posing a significant threat to Raydium’s dominance in the Solana ecosystem.

Potential for New Features and Market Expansion

The crypto community speculates that Pump.fun’s new AMM could pave the way for additional features like memecoin perpetuals and lending. These features could further strengthen its ecosystem, offering users more ways to trade and earn. Blockchain data has also identified $CRACK as the first test token added to Pump.fun’s AMM liquidity pool, hinting that the platform is actively experimenting with the new setup.

Pump.fun has also been in the spotlight for its proactive security measures. Recently, the platform stopped a hacker linked to the $1.4 billion Bybit hack from laundering funds through its ecosystem. The attacker attempted to use a memecoin called “QinShihuang (500000)” to move over $26 million in trade volume before being blocked. This move reflects Pump.fun’s growing focus on safeguarding its platform.

What’s Next for Pump.fun and Raydium?

As of now, Pump.fun has not made any official statements regarding the AMM’s full launch. However, the testing phase signals a possible shift in Solana’s memecoin market. If Pump.fun successfully rolls out its AMM, it could significantly impact Raydium’s position as the default DEX for new tokens. The coming weeks will reveal if this move will reshape Solana’s trading landscape or if Raydium can adapt and hold its ground.