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

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

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

Pump.fun, a leading Solana-based memecoin launchpad6, is reportedly testing its own Automated Market Maker (AMM), potentially shaking up Solana’s decentralized exchange (DEX) ecosystem. A leaked testnet site, amm.pump.fun, first spotted by @trenchdiver101, has sparked5 speculation that Pump.fun could soon launch its own trading infrastructure—possibly replacing Raydium as the default DEX for graduated tokens.

If successful, this in-house AMM would allow Pump.fun to establish its own liquidity pools for memecoins, reducing its reliance on Raydium. The move could also enable Pump.fun to capture a larger share of trading fees, offer custom incentives for token holders, and retain more liquidity within its ecosystem.

Raydium’s Price Takes a Hit as Market Reacts

The crypto market responded swiftly to the news, with Raydium’s native token ($RAY) dropping 26% to $3.19 shortly after the announcement. Despite the price dip, trading volume surged by 256%, reaching $233.25 million, as traders adjusted to the potential disruption in Solana’s liquidity landscape.

Currently, around 1.4% of memecoins launched on Pump.fun eventually migrate to Raydium, with projects paying 6 SOL (~$950) to transition their tokens. If Pump.fun successfully launches its own AMM, it could significantly reduce this outflow, posing a serious challenge to Raydium’s dominance in the Solana ecosystem.

What New Features Could Pump.fun Introduce?

Industry insiders speculate that Pump.fun’s AMM could introduce additional trading tools such as memecoin perpetuals and lending, further enhancing the platform’s capabilities. Blockchain data also suggests that $CRACK was the first token added to the test AMM’s liquidity pool, indicating that live experiments are already underway.

Pump.fun has also made headlines for its security-focused approach. Recently, the platform successfully blocked a hacker connected to the $1.4 billion Bybit exploit from laundering funds through its ecosystem. The attacker attempted to use a memecoin named “QinShihuang (500000)” to funnel over $26 million in volume before being detected and stopped. This highlights Pump.fun’s growing commitment to security alongside its ambitious expansion plans.

What’s Next for Pump.fun and Raydium?

Pump.fun has yet to release an official statement regarding the AMM’s public launch. However, if the platform successfully rolls out its own trading infrastructure, it could significantly alter Solana’s memecoin market—potentially challenging Raydium’s long-standing position as the go-to DEX for new tokens.

The coming weeks will be crucial in determining whether Raydium can adapt or if Pump.fun will emerge as the new powerhouse in Solana’s trading ecosystem.

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