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

Will the STRC issuance price discussed with ChatGPT really fall into a death spiral?

TRON revitalizes the image of the bull, creating a more approachable brand character
How to Trade Apple and Nvidia on a Crypto Exchange in 2026 (Without Buying Shares)

Exclusive Interview with Strategy CEO: Putting Aside the Sale of 32 BTC, the 60 Trillion AI Intelligence is the Ultimate Fate of Bitcoin

Morning Report | The South Korean Financial Services Commission plans to expand the regulatory sandbox to include virtual assets; the parent company of the New York Stock Exchange, ICE, has reached a partnership with OKX to jointly establish a cryptocu...

Morning Report | Secret Network loses $4.67 million due to cross-chain vulnerability; Michael Saylor releases Bitcoin Tracker information again, may disclose increased holdings data next week

Kalshi's biggest competitor is not Polymarket

The second half of the computing power battle: Intel CEO Pat Gelsinger reveals how AI is reshaping the global semiconductor supply chain

B.AI partners with MiniMax to launch a limited-time free experience of M3, enabling zero-threshold implementation of Agentic productivity through full-stack infrastructure

A company that was on the verge of bankruptcy has just surpassed Bitcoin in market value

The two giants are racing in "credit": loan balances of 9.9 billion vs 14.6 billion USD, Brazil has become the main battlefield

Rented Belief: How Much of the Bitcoin ETF Fund Flow is Real Money

On-chain finance: On-chain IPOs and on-chain ICOs, a new frontier in the trillion-dollar market

WEEX Live mode: Monitor 20 trading pairs at once and trade like a pro

WEEX Makes Affiliate Access Easier on the Web and in the App

Customize Your Spot Trading Page: Drag Modules and Move the Order Panel Where You Want It

Perp DEX: The Next Generation Exchange "War"

