Raydium experienced a significant surge, jumping more than 16% to reach $3.66, driven by increased trading volume of over 127%. This jump in price has raised eyebrows, prompting analyst MiggyMello to warn of a potential pullback before the real breakout occurs. 💰
Why is RAY Price Pumping?
A surge in Raydium’s LaunchLab activity is driving this momentum. This token launchpad recently attracted $900k in daily fees – surpassing its swap platform revenue for the first time. This influx of funds directly translates to buybacks, with 30% going towards purchasing RAY tokens, which amounts to about $110k each day at current prices.
Buyback Power
With a market cap of around $1B and this strong buyback pressure from Raydium’s daily fees, the supply of RAY on the market is being significantly reduced. 📈
Raydium’s protocol revenue also saw a substantial increase, reaching 60% growth compared to last quarter. This translates to an annualized buyback yield of approximately 6%. If LaunchLab’s daily fees remain above $800k, the buyback pressure will continue.
Growing Momentum
The ecosystem surrounding Raydium is also providing a boost. Raydium partnered with xStocks to bring tokenized equities liquidity pools to its platform, and the upcoming Firedancer upgrade (expected Q3 2025) promises to make Solana’s network faster and more efficient. ⚡️
Price Chart Analysis: One Dip Before the Big Move?
Analyst MiggyMello points out that Raydium’s price is still not in a perfect bullish setup on the 3D chart, with the 50-period MA (dark blue) below the 100-period MA (light blue).
Raydium price may experience another 30% surge before a potential pullback back to the 50 MA. The analyst believes this could be followed by a strong rally if the dip holds above crucial support levels and buybacks remain consistent.
Looking ahead, Raydium’s future looks promising as it continues to expand its impact on the Solana DeFi ecosystem. Will we see another big move up? Stay tuned!