RAY, the native governance token of Raydium, the automated market maker (AMM) decentralized alternate (DEX) on Solana, soared 30% on Might 17 earlier than reversing positive factors, plunging to identify charges.
RAY Costs Beneath Stress
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 price, with a median buying and selling quantity of $2 million previously 24 hours.
At this tempo, RAY stays in a bearish formation as bears peeled again positive factors 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 value motion has continued and hasn’t reversed losses from mid-November 2022.
The collapse of FTX, a crypto alternate, 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 enlargement 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 staff, the choice was reached following a server load resulting from API abuse. Particularly, there was a nearly 3X jump in API pings in April than in March 2023. The additional load careworn Raydium’s servers, disrupting the connection.
The staff behind the venture 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 beneath and why points have popped up. Almost 2,000 new swimming pools have been created within the first two weeks of Might, bringing Raydium’s complete pool rely to almost 8,000.
This replace, V.2.10.11, served to appropriate this challenge. Apart from rising the server capability by 11X, there have been a number of bug fixes that the alternate expects to “enormously enhance person interface responsiveness.” Whereas the replace was obtained enthusiastically, momentum has waned, and RAY is buying and selling close to Might 2023 lows.
Trackers show that Raydium’s complete 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 lively wallets (UAW) from early Might 2023, in line with 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