Pump.fun self-hosted AMM, can Raydium still monopolize the meme liquidity pool?
Original Author: CryptoBaci, Crypto Researcher
Original Translation: ChatGPT
Editor's Note: This article analyzes Pump.fun's launch of a new AMM challenging Raydium's monopoly position. Pump.fun aims to reduce reliance on Raydium through an independent liquidity pool, potentially causing liquidity outflow and impacting Raydium's market share. The article also discusses the advantages and risks of the new AMM, especially liquidity issues and potential vulnerabilities.
The following is the original content (slightly rephrased for better readability):
Pump.fun has just introduced its own AMM, which may indicate that Pump.fun is no longer relying on Raydium. They have launched their own liquidity pool, and liquidity may begin to shift away from Raydium. This implies:
• Meme coins may no longer need Raydium.
• Pump.fun will keep all fees within its own ecosystem.
• There may be LP rewards (similar to other DEXs).
The first test token $CRACK has been added to the liquidity pool.

So far, all Meme coin liquidity has relied on Raydium. But now:
• You create a token and it can be traded immediately.
• Traders do not need to switch platforms.
• Pump.fun is becoming a fully independent ecosystem.
This may shift the power balance on Solana.

Advantages of the new AMM:
• Instant liquidity without relying on external platforms.
• Fully integrated with Pump.fun.
• Early opportunities for traders → arbitrage and potential system vulnerabilities.
• If this project is successful, it is an early opportunity to enter a new market.

Risks and Drawbacks:
• Still in beta stage → potential vulnerabilities and security risks.
• Liquidity has not reached Raydium's depth yet.
• There is no guarantee that traders will fully migrate to this AMM.
It's either Pump.fun dominates the market share, or this AMM remains niche.

How does this affect $RAY?
Raydium has already felt the pressure. $RAY dropped 10% after the AMM release news. Why?
• If liquidity starts flowing out, Raydium's pool revenues will be impacted.
• Decrease in trading volume = reduced interest in the DEX = further price decline.
• If this trend continues, $RAY could face an even bigger hit.
Raydium is losing control of Solana liquidity.

What to do next?
• Try the new AMM.
• Monitor liquidity and new tokens.
• Continue to observe Raydium's performance—can they defend their position?

You may also like

February 12 Key Market Information Discrepancy - A Must-See! | Alpha Morning Report

Kalshi Trading Volume Hits New All-Time High, What Is a Reasonable Pre-market Stock Price?

Before Musk gave him $1 million, he made $600,000 by launching a coin

BlackRock Makes First Foray into DeFi Trading, Coinbase CEO's Stock Sale Controversy - What's Trending in the Global Crypto Community Today?

WEEX AI Trading Hackathon Finals: The World's Biggest AI Trading Competition Is Live
WEEX AI Trading Hackathon Finals are live. 37 finalists compete for $1M+ prizes & a Bentley Bentayga S. Hubble AI powers 10 finalists. Watch live PnL leaderboards and see who wins the ultimate AI trading competition.

Key Market Information Discrepancy on February 11th – A Must-See! | Alpha Morning Report

February 11 Market Key Intelligence, How Much Did You Miss?

Analyzing the Impact of Technological Trends in 2026
Key Takeaways The rapid evolution of technology continues to reshape industries, creating both opportunities and challenges. Understanding the…

Navigating Crypto Content Challenges in a Digital World
Key Takeaways Effective content management in the crypto industry involves addressing usage limits and optimizing resources. Staying informed…

Cryptocurrency Exchanges: Current Trends and Future Outlook
Key Takeaways The cryptocurrency exchange market continues to expand, influenced by various global economic trends. User experience and…

Untitled
I’m sorry, but I can’t generate a rewritten article without access to specific content for rewriting. If you…

Crypto Market Dynamics: An In-depth Overview
Market fluctuations provide insights into the volatility and dynamics of cryptocurrency trading. Key market participants play significant roles…

Predicting High-Frequency Trading Strategies in the Market, How to Ensure a Guaranteed $100,000 Profit?

This might be the average person's final opportunity to get ahead of AI

A Day Gathering Wall Street's Old Money: LayerZero's "Mainnet Transition" Narrative

Full Text of CZ's New Interview: From Ordinary Programmer to Richest Chinese, Involvement with FTX, Going to Jail, Doing Charity, Publishing a Book, What is CZ Focus on Now?

Mr. Beast is officially entering the world of finance, the Gen Z's new banker

SBF Appeals from Prison, Files 35-Page Motion Accusing Trial of "Collusion"
February 12 Key Market Information Discrepancy - A Must-See! | Alpha Morning Report
Kalshi Trading Volume Hits New All-Time High, What Is a Reasonable Pre-market Stock Price?
Before Musk gave him $1 million, he made $600,000 by launching a coin
BlackRock Makes First Foray into DeFi Trading, Coinbase CEO's Stock Sale Controversy - What's Trending in the Global Crypto Community Today?
WEEX AI Trading Hackathon Finals: The World's Biggest AI Trading Competition Is Live
WEEX AI Trading Hackathon Finals are live. 37 finalists compete for $1M+ prizes & a Bentley Bentayga S. Hubble AI powers 10 finalists. Watch live PnL leaderboards and see who wins the ultimate AI trading competition.