Pump.fun Reportedly Testing In-House AMM That Could Replace Raydium

• Pump.fun is testing a new AMM that could rival Raydium as Solana’s top memecoin exchange.
• RAY token dropped 20% amid Pump.fun’s AMM rumors, with analysts predicting a 30%-50% trading volume decline if launched.

Pump.fun, a Solana-based memecoin launchpad, is reportedly testing a new in-house automated market maker (AMM), which could potentially replace Raydium as the primary decentralized exchange for tokens launched on its platform.

This development was initially reported by Aggr News on X (formerly Twitter), reporting that this innovation might challenge Raydium’s current dominance in the memecoin space.

The new AMM is currently undergoing internal testing and could serve as a replacement for Raydium as the primary decentralized exchange for tokens launched on Pump.fun. 

Effects On Solana Memecoin and Raydium 

Raydium’s RAY token has already felt the impact of these rumors, dipping over 20% in the past 24 hours. Investors are concerned about the potential influence of this news on Raydium’s trading volume. Currently, only 1.4% of pump.fun tokens migrate to Raydium. 

An in-house AMM could retain that liquidity within the Pump.fun ecosystem, directly impacting Raydium’s market share. Analysts even foresee a potential 30%-50% drop in Raydium trading volume if pump.fun proceeds with this development. 

Pump.fun’s AMM Fuels Memecoin Innovation

The implications extend beyond trading volumes, price increases, or profit initiatives. The X Community now speculates that news features like memecoin perpetuals and lending could be possible if in-house AMM launch successfully. The AMM will solidify pump.fun’s position as a leader in memecoin innovation.

According to DeFiLama, over $500 million in total swap fees have already been generated, which boosts Pump.fun’s revenue by capturing swap fees that would otherwise go to third-party platforms.

This AMM development also coincides with pump.fun’s recent intervention in the allegedly $1.4 billion Bybit hack. Pump.fun successfully blocked the hackers and disallowed them from laundering stolen funds through a memecoin launch. 

The hackers attempted fraud of over $26 million in the trade volume via the “QinShihuang (500000)” coin before being halted. According to Blockchain data, the hacker was reported to have moved 60 SOL to a different wallet. After which he launched the coin on pump.fun, to aid his scam intention. 

This incident, in relation to the AMM development, showcases Pump.fun’s growing influence and role in the decentralized finance space.Pump.fun co-founder Alon Cohen recently stated that pump.fun “One way to think about Pump.fun is that it’s the biggest attention marketplace on the internet” 

Highlighted Crypto for Today

Crypto Exchange eXch Denies Money Laundering Allegations After Bybit Hack