RAY, the native governance token of Raydium, the automated market maker (AMM) decentralized change (DEX) on Solana, soared 30% on Could 17 earlier than reversing positive factors, plunging to identify charges.
RAY Costs Underneath Stress
In line with CoinMarketCap data on Could 30, RAY is altering arms at $0.19, steady 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 mean 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 positive factors posted on Could 17, aligning the token with bears from mid-February 2023.
Like Solana and tokens primarily based on this community, RAY’s bearish value motion has endured 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 enlargement of RAY costs on Could 17 coincided with the improve of the Raydium DEX to model V.2.10.11.
In line with the event crew, 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 pressured Raydium’s servers, disrupting the connection.
The crew behind the challenge acknowledged:
Raydium’s APIs have been pinged greater than 50 billion occasions in April, up from 18 billion in March. Could 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 Could, bringing Raydium’s complete pool depend to almost 8,000.
This replace, V.2.10.11, served to appropriate this challenge. Moreover growing the server capability by 11X, there have been a number of bug fixes that the change expects to “significantly enhance person interface responsiveness.” Whereas the replace was obtained enthusiastically, momentum has waned, and RAY is buying and selling close to Could 2023 lows.
Trackers show that Raydium’s complete worth locked (TVL) is round $30 million as of Could 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 Could 2023, in keeping with DappRadar.
The contraction within the variety of customers coincides with the closure of the RAY Declare Portal on Could 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