RAY, the native governance token of Raydium, the automated market maker (AMM) decentralized change (DEX) on Solana, soared 30% on Might 17 earlier than reversing good points, plunging to identify charges.
RAY Costs Underneath Strain
Based on CoinMarketCap data on Might 30, RAY is altering palms 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 charge, with a median buying and selling quantity of $2 million prior to now 24 hours.
At this tempo, RAY stays in a bearish formation as bears peeled again good points posted on Might 17, aligning the token with bears from mid-February 2023.
Like Solana and tokens primarily based on this community, RAY’s bearish worth motion has continued and hasn’t reversed losses from mid-November 2022.
The collapse of FTX, a crypto change, 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.
Based on the event group, 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 burdened Raydium’s servers, disrupting the connection.
The group behind the mission acknowledged:
Raydium’s APIs have been pinged greater than 50 billion occasions 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 below 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 depend 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 change 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 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 accordance 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 numerous Raydium liquidity swimming pools with out burning or proudly owning any liquidity pool (LP) tokens.
Function Picture From Canva, Chart From TradingView