RAY, the native governance token of Raydium, the automated market maker (AMM) decentralized trade (DEX) on Solana, soared 30% on Might 17 earlier than reversing beneficial properties, plunging to identify charges.
RAY Costs Below Strain
In accordance with CoinMarketCap data on Might 30, RAY is altering fingers at $0.19, secure in opposition to the USD, Bitcoin, and Ethereum on the final buying and selling day.
RAY has a market capitalization of $41.2 million at this fee, with a median buying and selling quantity of $2 million up to now 24 hours.
At this tempo, RAY stays in a bearish formation as bears peeled again beneficial properties posted on Might 17, aligning the token with bears from mid-February 2023.
Like Solana and tokens based mostly on this community, RAY’s bearish worth motion has endured and hasn’t reversed losses from mid-November 2022.
The collapse of FTX, a crypto trade, and Alameda Analysis, the funding wing of FTX, which was closely invested in Solana, triggered a pointy sell-off of SOL, weighing negatively on RAY and different ecosystems.
The sharp growth of RAY costs on Might 17 coincided with the improve of the Raydium DEX to model V.2.10.11.
In accordance with the event crew, the choice was reached following a server load as a consequence of API abuse. Particularly, there was a nearly 3X jump in API pings in April than in March 2023. The additional load confused Raydium’s servers, disrupting the connection.
The crew behind the mission said:
Raydium’s APIs have been pinged greater than 50 billion instances in April, up from 18 billion in March. Might figures are set to surpass April highs. This highlights how a lot stress servers have been underneath and why points have popped up. Practically 2,000 new swimming pools have been created within the first two weeks of Might, bringing Raydium’s whole pool rely to just about 8,000.
This replace, V.2.10.11, served to right this concern. In addition to growing the server capability by 11X, there have been a number of bug fixes that the trade expects to “enormously enhance person interface responsiveness.” Whereas the replace was acquired enthusiastically, momentum has waned, and RAY is buying and selling close to Might 2023 lows.
Trackers show that Raydium’s whole worth locked (TVL) is round $30 million as of Might 30, down from $2.2 billion recorded in mid-November 2021. In the meantime, there was a noticeable drop within the variety of distinctive energetic wallets (UAW) from early Might 2023, based on DappRadar.
The contraction within the variety of customers coincides with the closure of the RAY Declare Portal on Might 14. This portal was opened following the hack in December 2022, when the DEX misplaced over $2 million. The hacker drained person funds from varied Raydium liquidity swimming pools with out burning or proudly owning any liquidity pool (LP) tokens.
Function Picture From Canva, Chart From TradingView